Mealey's Asbestos Bankruptcy

  • February 20, 2020

    2nd Circuit Reverses, Says Manville Broker Protected From Asbestos Claims

    NEW YORK — The Second Circuit U.S. Court of Appeals handed Johns-Manville Corp.’s insurance broker a win Feb. 19 in a long-running dispute over whether asbestos claimants can hold the broker liable for their injuries in state court.  They can’t, the Second Circuit said, reversing a district court’s finding that their due process rights were violated in Johns-Manville’s bankruptcy case (In re Johns-Manville Corp., Marsh USA, Inc. v. The Bogdan Law Firm, No. 18-2531, 2nd Cir., 2020 U.S. App. LEXIS 5019).

  • February 19, 2020

    Divided Pennsylvania Top Court Keeps Per Capita Apportionment In Asbestos Cases

    HARRISBURG, Pa. — The Pennsylvania Fair Share Act does not upset the state’s traditional per capita apportionment of fault in strict liability cases, but does permit the inclusion of settled asbestos bankruptcy entities on the verdict sheet, a divided Pennsylvania Supreme Court said Feb. 19 (William Roverano, et al. v. John Crane Inc., et al., No. 27 EAP 2018, Pa. Sup., 2020 Pa. LEXIS 1035).

  • February 19, 2020

    3rd Circuit Turns Back Energy Future Claimants’ Due Process Challenge

    PHILADELPHIA — Approval of a claims bar date and reorganization plan for Energy Future Holdings Corp. (EFH) did not violate the due process rights of people who develop asbestos diseases in the future because the plan leaves them a good chance to have their claims reinstated by a bankruptcy judge when they arise, the Third Circuit U.S Court of Appeals held Feb. 18 (In re:  Energy Future Holdings, et al., No. 19-1430, 3rd Cir., 2020 U.S. App. LEXIS 4947).

  • February 14, 2020

    3rd Circuit Hears From Claimants, Debtors On Supreme Court Holding

    PHILADELPHIA — A recent U.S. Supreme Court ruling does not support the proposition that a bankruptcy claims bar date order is a final order, holders of “unmanifested” asbestos claims told the Third Circuit U.S. Court of Appeals on Jan. 31, while Chapter 11 debtor Energy Future Holdings Corp. (EFH) said the bar date is a final order under the high court’s holding, meaning an appeal by the claimants is untimely (In re:  Energy Future Holdings, et al., No. 19-1430, 3rd Cir.).

  • February 10, 2020

    Law-Of-Case Doctrine Bars Denial Of Lift-Stay Motion, Insurer Argues

    TACOMA, Wash. — A Washington federal bankruptcy judge committed reversible error in denying an insurer’s bid to vacate a stay order barring its contribution claims against other insurers for asbestos claims against Chapter 11 debtor Fraser’s Boiler Service Inc., the insurer argues in a Jan. 31 reply brief on appeal in federal court (National Union Fire Insurance Company of Pittsburgh, PA v. Fraser’s Boiler Service, Inc., et al., No. 3:19-cv-5648, W.D. Wash.).

  • February 10, 2020

    Asbestos Claims In Bestwall Case Enjoined For Now, Bankruptcy Judge Reiterates

    CHARLOTTE, N.C. — A North Carolina federal bankruptcy judge on Jan. 31 mostly upheld her ruling issuing an injunction in the Chapter 11 case of Bestwall LLC protecting the debtor and affiliates, including Georgia-Pacific LLC, from asbestos claims but warned that she won’t decide until a reorganization plan confirmation hearing which parties are entitled to permanent injunctive relief (Bestwall LLC v. Those Parties Listed on Appendix A to Complaint, et al., No. 17-03105, W.D. N.C. Bkcy.).

  • February 06, 2020

    Bankruptcy Judge Enjoins All Asbestos Claims Against DBMP, CertainTeed, Affiliates

    CHARLOTTE, N.C. — A North Carolina federal bankruptcy judge on Jan. 29 entered a temporary restraining order halting the prosecution of all asbestos personal injury claims against new Chapter 11 debtor DBMP LLC and its affiliates, including the former CertainTeed Corp., pending a hearing on injunctive relief to further protect the debtor and affiliates (DBMP LLC v. Those Parties Listed on Appendix A to Complaint, et al., No. 20-03004, W.D. N.C. Bkcy.).

  • February 05, 2020

    New CertainTeed Affiliate Seeks Appointment Of Asbestos Claimants’ Committee

    CHARLOTTE, N.C. — New Chapter 11 debtor DBMP LLC asked a North Carolina federal bankruptcy judge Jan. 23 to appoint the members of an ad hoc asbestos claimants’ committee to the official committee for the duration of the case (In re DBMP LLC, No. 3:20-bk-30080, W.D. N.C. Bkcy.).

  • January 30, 2020

    New Debtor Paddock Seeks Appointment Of James Patton As FCR

    WILMINGTON, Del. — New Chapter 11 debtor Paddock Enterprises LLC asked a Delaware federal bankruptcy court on Jan. 22 to appoint a longtime advocate for future asbestos disease sufferers in corporate bankruptcies as the future claimants’ representative (FCR) for its case (In re Paddock Enterprises, LLC, No. 20-10028, D. Del. Bkcy.).

  • January 29, 2020

    Judge Denies Reconsideration Bid For Stay Of Kaiser Gypsum Coverage Row

    CHARLOTTE, N.C. — A North Carolina federal judge on Jan. 17 declined to reconsider his decision to stay a declaratory judgment dispute between Chapter 11 debtors Kaiser Gypsum Co. Inc. and Hanson Permanente Cement Inc. and their main asbestos insurer pending resolution of the debtors’ plans to reorganize (Truck Insurance Exchange v. Kaiser Gypsum Company, Inc., et al., No. 3:19-cv-467, W.D. N.C.).

  • January 27, 2020

    Louisiana Jury Awards $8,214,479.35 In Insulator Asbestos Case

    NEW ORLEANS — A Louisiana jury in October 2019 awarded $8,214,479.35 to the widow and four children of a man exposed to asbestos as an insulator, sources told Mealey Publications (Elray Lege,et al. v. Union Carbide, et al., No. 2016-5598, La. Dist., Orleans Parish).

  • January 27, 2020

    Justice Issues Sanction For Premature J&J Asbestos Deposition Disclosure

    NEW YORK — Plaintiffs’ premature disclosure of the deposition testimony of Johnson & Johnson’s chief executive officer warrants an award of fees and costs, a New York justice held Jan. 17.  But whether the plaintiffs are entitled to depose more company employees is a question for the special master, he said (Donald Minassian, et al. v. Brenntag North America, et al., No. 190399/2018, N.Y. Sup., New York Co.).

  • January 27, 2020

    Judge Says Honeywell Must Produce Pre-2002 Asbestos Litigation Records

    BOWLING GREEN, Ky. — Having never previously suggested that producing records of pre-2002 asbestos litigation posed a burden, Honeywell International Inc. cannot reasonably rely on the argument in a motion for reconsideration, a federal magistrate judge in Kentucky said Jan. 6 (Jack Papineau, et al. v. Brake Supply Company Inc., et al., No. 18-168, W.D. Ky.).

  • January 24, 2020

    New CertainTeed Affiliate Declares Bankruptcy To Resolve Asbestos Claims

    CHARLOTTE, N.C. — A newly formed affiliate of frequent asbestos personal injury defendant CertainTeed LLC filed a Chapter 11 petition on Jan. 23 in North Carolina federal bankruptcy court looking to permanently resolve CertainTeed’s asbestos liabilities through establishment of a settlement trust (In re DBMP LLC, No. 3:20-bk-30080, W.D. N.C. Bkcy.).

  • January 23, 2020

    3rd Circuit Asks For Briefing On Effects Of Ritzen Group On Appeal

    PHILADELPHIA — The Third Circuit U.S. Court of Appeals on Jan. 22 said it wants to know what asbestos claimants and Chapter 11 debtor Energy Future Holdings Corp. (EFH) think about the impact a recent U.S. Supreme Court decision has on their dispute over the constitutionality of discharging claims of future but yet unknown disease sufferers (In re:  Energy Future Holdings, et al., No. 19-1430, 3rd Cir.).

  • January 23, 2020

    Court Cites Lack Of Expert Opinion In Affirming Asbestos-Talc Judgment

    LOS ANGELES — A trial court did not err in rejecting a couple’s challenges to expert testimony that talc was free of asbestos, and because they offered no competing expert testimony, the judge properly granted summary judgment, a California appeals court held Jan. 22 (Ann Patrice Gibbons, et al. v. Johnson & Johnson Consumer Inc., No. B288031, Calif. App., 2nd Dist.).

  • January 22, 2020

    Claims Filed After Kaiser Stay Lifted Sent Back To New York Court

    NEW YORK — A couple’s asbestos personal injury claims against Chapter 11 debtor Kaiser Gypsum Co. Inc. will be heard in New York state court; a federal judge on Jan. 15 remanded the case because the debtor removed it too late (Anna Nocelli, et al. v. Kaiser Gypsum Company, Inc., et al., No. 1:19-cv-1980, S.D. N.Y., 2020 U.S. Dist. LEXIS 9025).

  • January 21, 2020

    Settling Insurers Say Stay Against Contribution Claims Should Remain In Place

    TACOMA, Wash. — A Washington federal bankruptcy court’s denial of an insurer’s bid to vacate a stay order barring its contribution claims against other insurers for asbestos claims against Chapter 11 debtor Fraser’s Boiler Service Inc. is only an interlocutory ruling and is therefore not appealable, the other insurers, who have settled with the debtor, say in a Jan. 10 appellee brief in federal court (National Union Fire Insurance Company of Pittsburgh, PA v. Fraser’s Boiler Service, Inc., et al., No. 3:19-cv-5648, W.D. Wash.).

  • January 21, 2020

    Bankruptcy Court Maps Plan To Resolve Final Issues In Debtor, Insurer Row

    NEW YORK — A New York federal bankruptcy judge issued a scheduling order Jan. 16 for resolution of the remaining issues in a long-running dispute between Chapter 11 debtor Rapid-American Corp. and insurers over coverage for asbestos liability while the parties await his ruling on their last round of summary judgment briefing (Rapid-American Corporation, et al. v. Travelers Casualty and Surety Company, et al., No. 15-01095, S.D. N.Y. Bkcy.).

  • January 14, 2020

    Missouri Jury Clears Johnson & Johnson In Ovarian Cancer Talc Case

    ST. LOUIS — A St. Louis jury on Dec. 20 returned a verdict for Johnson & Johnson in a case in which the plaintiff claimed that asbestos in the company’s talc product led her to develop ovarian cancer (Vickie Forrest v. Johnson & Johnson, et al., No. 1522-CC00419-01, Mo. Cir., St. Louis Co.). VIDEO FROM THE TRIAL IS AVAILABLE.