Mealey's Asbestos Bankruptcy

  • October 15, 2021

    Johnson & Johnson Affiliate Given All Asbestos Liability Files For Bankruptcy

    CHARLOTTE, N.C. — LTL Management LLC, a subsidiary of health care giant Johnson & Johnson (J&J) that was created recently in a corporate restructuring “to hold and manage claims in the cosmetic talc litigation,” filed for Chapter 11 protection on Oct. 14 in North Carolina federal bankruptcy court with plans to create a $2 billion trust to pay asbestos personal injury claims.

  • October 11, 2021

    Representative Needed To Continue Appeal Of Deceased Claimant, 2nd Circuit Says

    NEW YORK — After only recently learning about the spring death of an asbestos claimant in an appeal against a Johns-Manville Corp. affiliate, the Second Circuit U.S. Court of Appeals on Oct. 1 directed the claimant’s attorneys to file a motion to substitute a personal representative for the deceased as the appellant.

  • September 28, 2021

    Aldrich Pump Debtors Propose Bankruptcy Plan With $545M Asbestos Trust

    CHARLOTTE, N.C. — Chapter 11 debtors Aldrich Pump LLC and Murray Boiler LLC filed a plan of reorganization Sept. 24 in North Carolina federal bankruptcy court that proposes a $545 million trust to resolve asbestos personal injury claims and protect the debtors and their affiliates from such claims.

  • September 28, 2021

    Missouri Jury Returns Defense Verdict In J&J Talc Case

    ST. LOUIS — A Missouri jury on Sept. 27 returned a defense verdict for two Johnson & Johnson entities after an attorney for the company told the jury that the theory that three women contracted ovarian cancer from genital talc use “doesn’t make any sense,” sources told Mealey Publications. VIDEO FROM THE TRIAL IS AVAILABLE.

  • September 24, 2021

    Johnson & Johnson Seeks Dismissal Of Bankrupt Talc Supplier’s Indemnification Suit

    WILMINGTON, Del. — An adversary action filed by Chapter 11 debtor Imerys Talc America Inc. against Johnson & Johnson (J&J) seeking indemnification for asbestos claims should be dismissed because the talc supply and stock purchase agreements the claims are based on do not require J&J to indemnify the talc company, J&J says in a Sept. 21 motion in Delaware federal bankruptcy court.

  • September 23, 2021

    Bankruptcy Judge Approves Rapid-American’s Liquidation Proposal

    NEW YORK — A New York federal bankruptcy judge on Sept. 13 confirmed a plan of liquidation for Chapter 11 debtor Rapid-American Corp. that establishes a liquidating trust to evaluate and pay asbestos personal injury claims.

  • September 23, 2021

    Insurer To 4th Circuit: Kaiser Gypsum’s Reorganization Plan Violates Section 524(g)

    RICHMOND, Va. — Confirmation of the plan of reorganization for Chapter 11 debtors Kaiser Gypsum Co. Inc. and Hanson Permanente Cement Inc. should be reversed because the plan does not meet the requirements of asbestos trust bankruptcy law and was filed in bad faith, the debtors’ primary insurer tells the Fourth Circuit U.S. Court of Appeals in a Sept. 20 opening brief in its appeal of the plan confirmation.

  • September 22, 2021

    Reorganized Fairbanks Drops Coverage Actions Against Asbestos Insurers

    NEW YORK — Reorganized Chapter 11 debtor The Fairbanks Co. and its asbestos insurers on Aug. 31 stipulated to the dismissal of two consolidated coverage suits in New York federal court, saying their recent settlements in Fairbanks’ bankruptcy case resolved all claims in the actions.

  • September 21, 2021

    Aldrich Pump Debtors Granted Extension To File Reorganization Plan

    CHARLOTTE, N.C. — A North Carolina federal bankruptcy judge on Sept. 9 gave Chapter 11 debtors Aldrich Pump LLC and Murray Boiler LLC more time to file a plan of reorganization that is supported by asbestos claimants.

  • September 21, 2021

    Importance Of Recent Court Ruling Debated In Asbestos Claimant’s 2nd Circuit Appeal

    NEW YORK — A late-filed supplemental authority in an appeal by a woman asserting asbestos personal injury claims against a Johns-Manville Corp. affiliate “has no bearing” on the case and should be disregarded, the affiliate says in a Sept. 17 response letter to the Second Circuit U.S. Court of Appeals.

  • September 20, 2021

    3rd Circuit Again Remands Suit Over W.R. Grace Asbestos Insurers’ Liability

    PHILADELPHIA — The Third Circuit U.S. Court of Appeals on Sept. 15 remanded for a second time a dispute over whether asbestos disease sufferers can pursue state court negligence claims against insurers of former Chapter 11 debtor W.R. Grace & Co. based on the insurers’ knowledge of the hazards to workers at a Montana asbestos mine.

  • September 16, 2021

    South Carolina Court Affirms Causation, Increased Damages Award In Asbestos Case

    SPARTANBURG, S.C. — A couple adequately demonstrated secondhand exposure to asbestos in gaskets after a judge properly admitted an expert’s belated opinion on how the fibers remain in the air long after being disturbed and the judge then properly increased a jury’s verdict from $300,000 to $1,870,000, a South Carolina appeals court said Sept. 1.

  • September 16, 2021

    Federal Agency Alone May Impose Cosmetic Labeling, J&J Tells Supreme Court

    WASHINGTON, D.C. — Courts are “hopelessly split” on whether preemption occurs only after federal agency notice-and-comment rule-making, and absent clarity, manufacturers and consumers face myriad warnings and labels, two Johnson & Johnson entities tell the U.S. Supreme Court in an Aug. 30 petition urging review of a Mississippi Supreme Court ruling allowing consumer protection claims involving the lack of warning about the dangers of ovarian cancer from consumer talc use.

  • September 13, 2021

    Asbestos-Talc Plaintiffs Dismiss Attempt At Enjoining J&J ‘Texas Two-Step’

    ST. LOUIS — Missouri state court plaintiffs currently locked in a state court trial with two Johnson & Johnson entities voluntarily dismissed a separate action pending in federal court after Johnson & Johnson removed the case, in which the plaintiffs sought to enjoin it from avoiding asbestos liabilities by shifting them into a shell entity it would then bankrupt.

  • September 10, 2021

    N.Y. Top Court Won’t Review Doomed Asbestos Suits Against Dissolved Entity

    ALBANY, N.Y. — Three asbestos plaintiffs failed in their attempt at reviving their lawsuits against dissolved Wisconsin asbestos distributor and supplier Special Electric Co. Inc. after the New York Court of Appeals on Sept. 9 denied leave to appeal.

  • September 07, 2021

    California Supreme Court Leaves Liability, $25M Asbestos Verdict In Place

    LOS ANGELES — The California Supreme Court on Aug. 11 denied a petition for review in a docket entry, leaving in place a ruling affirming a trial court’s decision to disregard a spreadsheet of mesothelioma verdicts submitted in a motion for a new trial and finding a jury’s 60% liability finding and $25 million in noneconomic damages proper.

  • September 07, 2021

    Asbestos-Talc Deposition Target Alex Gorsky Leaves Post As J&J CEO

    TRENTON, N.J. — Johnson & Johnson announced in an Aug. 20 Securities & Exchange Commission filing and related press release that Chairman and Chief Executive Officer Alex Gorsky is leaving his position with the company.  Asbestos-talc plaintiffs have targeted Gorsky with deposition requests since a 2018 television appearance where he rebutted claims that the company knew of the presence of asbestos in its talcum powder products.

  • September 07, 2021

    Asbestos Claimants’ TRO Request For Johnson & Johnson Restructuring Denied

    WILMINGTON, Del. — A Delaware federal judge on Aug. 27 allowed asbestos claimants’ representatives to intervene in an adversary action filed by Chapter 11 debtor Imerys Talc America Inc. against Johnson & Johnson (J&J) but denied the representatives’ request for a temporary restraining order (TRO) seeking to prevent J&J from avoiding its indemnity obligations to the debtor through a corporate restructuring.

  • September 01, 2021

    Jury Awards $26.5M In Asbestos-Talc Case, Including Punitive Damages

    OAKLAND, Calif. — A California court entered judgment on Aug. 27 after a jury awarded $100,000 during the punitive damages phase and $26.5 million in compensatory damages against two Johnson & Johnson entities that exposed a former teacher to asbestos in talc products, sources told Mealey Publications.

  • August 30, 2021

    Reverse Judgment On Exhaustion Requirement, Reinsurer Urges 2nd Circuit

    NEW YORK — Seeking reversal of an asbestos billing judgment in an excess insurer’s favor that was based on a ruling that an exhaustion requirement was ambiguous, a reinsurer says in its Aug. 19 appellant brief before the Second Circuit U.S. Court of Appeals that the insurer has successfully argued in separate proceedings that the same language is unambiguous; the reinsurer also says the insurer should be judicially estopped from arguing that the language is ambiguous.