Mealey's Asbestos Bankruptcy

  • January 28, 2019

    Asbestos Creditors Fail In Fight For Future Claimants Of Energy Future Holdings

    WILMINGTON, Del. — Asbestos claimants’ challenge to the constitutionality of discharging claims of future but yet unknown disease sufferers are statutorily moot because it affects the validity of former Chapter 11 debtor Energy Future Holdings Corp.’s entire reorganization plan, a Delaware federal judge ruled Jan. 24 in dismissing the claimants’ appeal of the plan’s approval (Sherry Fenicle, et al. v. Energy Future Holdings Corp., et al., No. 18-381, D. Del., 2019 U.S. Dist. LEXIS 11194).

  • January 28, 2019

    Union Carbide Avoids Punitive Damages In New Jersey Asbestos Case

    NEWARK, N.J. — A New Jersey jury on Jan. 24 decided against imposing punitive damages on Union Carbide Corp. just days after awarding a widow $2,380,000 on her claim that her husband contracted and died of mesothelioma after exposure to Calidria asbestos, sources told Mealey Publications (Thomasina Fowler v. Union Carbide Corp., et al., No. L-4820-11, N.J. Super., Middlesex Co.).  VIDEO FROM THE TRIAL IS AVAILABLE.

  • January 25, 2019

    South Carolina Judge Issues Trial Sanctions Over Discovery Dispute

    ANDERSON, S.C. — A jury may conclude that all of a company’s products contained asbestos, a South Carolina judge said Jan. 24 as part of her instructions at trial.  The ruling was one of several imposing sanctions on multiple defendants for alleged discovery violations in an asbestos case (Rita Joyce Glenn, et al. v. Air & Liquid Systems Corp., et al., No. 2015CP041607, S.C. Comm. Pls,, 10th Jud. Cir., Anderson Co.).

  • January 23, 2019

    Maremont, Subsidiaries File For Bankruptcy With Prepackaged Asbestos Plan

    WILMINGTON, Del. — With the preapproval of 100 percent of asbestos claimants, a nonoperating subsidiary of commercial vehicle and industrial products maker Meritor Inc. filed a prepackaged Chapter 11 plan of reorganization on Jan. 22 in Delaware federal bankruptcy court, looking to resolve its asbestos liabilities through a Section 524(g) trust (In re:  Maremont Corporation, et al., No. 19-10118, D. Del. Bkcy.).

  • January 23, 2019

    Bankruptcy Judge Approves Oakfabco’s Amended Disclosure Statement

    CHICAGO — With the final settlement with insurers in place in the Chapter 11 case of boiler company Oakfabco Inc., an Illinois federal bankruptcy judge on Jan. 16 approved the disclosure statement for the debtor’s plan of liquidation and set a March date for the plan confirmation hearing (In re:  Oakfabco, Inc., No. 15-27062, N.D. Ill. Bkcy.).

  • January 23, 2019

    Bestwall Gets More Time To File Reorganization Plan In Disputed Chapter 11 Case

    CHARLOTTE, N.C. — With two key issues yet to be decided in the Chapter 11 case of Bestwall LLC, including whether to dismiss the case, a North Carolina federal bankruptcy judge on Jan. 7 gave the company more time to file a plan of reorganization (In re Bestwall LLC, No. 17-31795, W.D. N.C. Bkcy.).

  • January 22, 2019

    On Remand, Insurers Seek Affirmance Of Bankruptcy Injunction Protection

    WILMINGTON, Del. — Because insurers’ asbestos policies with former Chapter 11 debtor W.R. Grace & Co. are “legally relevant” to state court tort claims filed against the insurers under the U.S. Bankruptcy Code, the insurers are protected from the claims by a bankruptcy injunction, they assert in a Dec. 21 brief on remand in Delaware federal bankruptcy court (Continental Casualty Co., et al. v. Jeremy B. Carr, et al., No. 15-50766, D. Del. Bkcy.).

  • January 18, 2019

    Johns-Manville Successor Asks For Injunction Barring Asbestos Claims

    NEW YORK — The successor to the PVC pipe business of former Chapter 11 debtor Johns-Manville Corp. asked a New York federal bankruptcy judge Jan. 16 to issue a “reiterative injunction” barring state court asbestos injury claims against the successor based on the bankruptcy protections implemented when it bought the business (In re Johns-Manville Corporation, et al., No. 82-11656, S.D. N.Y. Bkcy.).

  • January 16, 2019

    3rd Circuit To Rule On Jurisdiction With Merits Of Hospital, W.R. Grace Dispute

    PHILADELPHIA — The question of whether the Third Circuit U.S. Court of Appeals has jurisdiction to hear an appeal of a bankruptcy court’s denial of certification for a class of property owners seeking damages for asbestos from former Chapter 11 debtor W.R. Grace & Co. will be decided along with the merits of the appeal, a Third Circuit panel ruled Jan. 10 (In re Grace & Co., et al., No. 18-1960, 3rd Cir.).

  • January 14, 2019

    Jury Returns Defense Verdict In Illinois Asbestos Joint Compound Case

    CHICAGO — A Chicago jury returned a defense verdict in a retrial of a chrysotile asbestos case involving drywall products on Dec. 14, sources told Mealey Publications (Jo Ann Startley, et al. v. Welco Manufacturing Co., No. 20140L-002716, Ill. Cir., Cook Co.).

  • January 10, 2019

    7th Circuit Finds Judgment Mooted Employer’s Environmental Asbestos Claims Appeal

    MADISON, Wis. — An asbestos defendant’s success at summary judgment moots its appeals of previous rulings that found that environmental exposure claims fell outside Wisconsin’s statutory immunity for employers, the Seventh Circuit U.S. Court of Appeals held Jan. 8 (Pamela Kilty, et al. v. Weyerhaeuser Co., et al., No. 18-1974, Scott Spatz, et al. v. Weyerhaeuser Co., et al., No. 18-1975, 7th Cir.).

  • January 07, 2019

    Judge Stays Fraser’s Settlement Approvals Pending Insurers’ Appeal

    TACOMA, Wash. — A Washington federal judge in a Jan. 4 minute order agreed with former asbestos insurers of Chapter 11 debtor Fraser’s Boiler Service Inc. that a bankruptcy court’s orders approving settling insurers’ buyback of policies in settlements with the debtor should be stayed until Fraser’s confirmation hearing (In re:  Fraser’s Boiler Service, Inc., Nos. 3:18-cv-5637 and 3:18-cv-05638, W.D. Wash.).

  • January 04, 2019

    Government Shutdown Halts U.S. Trustee’s Appeal Of FCR Appointment

    TRENTON, N.J. — An appeal over whether a bankruptcy judge erred in appointing a future claimants’ representative (FCR) for asbestos claimants in Duro Dyne National Corp.’s Chapter 11 case was put on hold Dec. 31 by a New Jersey federal judge due to the partial shutdown of the federal government (Andrew R. Vara v. Duro Dyne National Corp., et al., No. 3:18-cv-15563, D. N.J.).

  • January 03, 2019

    U.S. Trustee Moves To Change Process For Picking Future Claimants’ Representative

    ROME, Ga. — With the apparent backing of a Georgia federal bankruptcy judge, the U.S. trustee in the new Chapter 11 case of The Fairbanks Co. on Dec. 31 proposed “shifting the paradigm away from decades of established practice” and opening the process for selecting a future claimants’ representative (FCR) to a field of candidates, rather than just the one candidate proposed by the debtor (In re The Fairbanks Company, No. 18-41768, N.D. Ga. Bkcy.).

  • December 21, 2018

    Maryland Court Agrees To Hear Exposure Issue In $7.28M Asbestos Verdict

    ANNAPOLIS, Md. — Maryland’s top court on Dec. 13 agreed to decide whether an insulator’s substantial presence at a facility was enough evidence on which a jury could infer exposure to the company’s asbestos-containing products and whether juries should hear about other companies dismissed from the case (Wallace & Gale Asbestos Settlement Trust v. William Edward Busch Jr., No. 59, Sept. Term 2018, Md. App.).

  • December 20, 2018

    Judge Denies Motions, Leaves $4.69B Ovarian-Cancer Asbestos Verdict Intact

    ST. LOUIS — A jury’s $4.69 billion asbestos-talc ovarian cancer verdict stands after a Missouri judge turned away challenges to jurisdiction, timeliness, causation and compensatory and punitive damage awards on Dec. 19 (Gail Ingham, et al. v. Johnson & Johnson, et al., No. 1522-CC-10417, Mo. Cir., St. Louis Co.).

  • December 20, 2018

    Bankruptcy Court OKs $12.4 Million Deal Between Oakfabco, CNA Insurers

    CHICAGO — An Illinois federal bankruptcy judge on Dec. 18 approved a $12.4 million settlement between Chapter 11 debtor Oakfabco Inc. and the last remaining insurers challenging the company’s reorganization efforts that will provide additional funding for an asbestos trust (In re:  Oakfabco, Inc., No. 15-27062, N.D. Ill. Bkcy.).

  • December 19, 2018

    Plaintiffs’ Bar Group Backs Asbestos Trusts In Claimant Data Dispute

    PHILADELPHIA — The Third Circuit U.S. Court of Appeals on Dec. 7 allowed the leading advocacy group for the plaintiffs’ bar to argue in support of nine asbestos bankruptcy trusts in their fight to stave off an appeal filed by Ford Motor Co. and Honeywell International Inc., which demand “full access” to trust claimants’ data in search of fraud (In re:  AC&S, Inc., et al., No. 18-1951, 3rd Cir.).

  • December 19, 2018

    Insurer Drops 4th Circuit Appeal Of Arbitration Denial In Garlock Coverage Dispute

    RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals on Dec. 17 granted a motion by an asbestos insurer filed the same day to dismiss its appeal in its failed attempt to arbitrate a coverage dispute with reorganized Chapter 11 debtor Garlock Sealing Technologies LLC (Safety National Casualty Corp. v. Garlock Sealing Technologies LLC, et al., No. 18-2088, 4th Cir.).

  • December 18, 2018

    Another FCR Candidate Under Attack By U.S. Trustee In New Asbestos Bankruptcy

    ROME, Ga. — New Chapter 11 debtor The Fairbanks Co. criticized the U.S. trustee Dec. 17 for his objection to the appointment of a longtime asbestos claimants’ delegate as future claimants’ representative (FCR) for the case, saying the trustee is wasting time for no good reason when the company just wants to begin reorganizing (In re The Fairbanks Company, No. 18-41768, N.D. Ga. Bkcy.).

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