NEW YORK — A reinsurer is responsible for its portion of a $35 million settlement of asbestos claims, a New York federal judge ruled Oct. 19, finding that the reinsurer is bound to an insurer’s allocation under the “follow-the-fortunes” doctrine (Fireman’s Fund Insurance Company v. OneBeacon Insurance Company, No. 14-4718, S.D. N.Y., 2020 U.S. Dist. LEXIS 192996).
CHARLOTTE, N.C. — The principal asbestos insurer for Chapter 11 debtor Kaiser Gypsum Co. Inc. is ready to press forward in North Carolina federal court with at least 13 objections to Kaiser’s plan of reorganization, filing a motion Oct. 1 to set a briefing schedule on the plan after a bankruptcy judge recommended that the court confirm the plan (In re: Kaiser Gypsum Company, Inc., et al., No. 20-537, W.D. N.C.).
CHARLOTTE, N.C. — In two docket entries following a hearing, a North Carolina federal bankruptcy judge on Oct. 6 appointed the representative for future asbestos claimants proposed by Chapter 11 debtors Aldrich Pump LLC and Murray Boiler LLC and rejected the preferred candidate of the asbestos claimants’ committee (In re Aldrich Pump LLC, et al., No. 3:20-bk-30608, W.D. N.C. Bkcy.).
NEW YORK — A woman with mesothelioma lost her bid to overturn a bankruptcy court ruling that her state court asbestos personal injury claim against a Johns-Manville Corp. subsidiary is enjoined by a bankruptcy injunction when a New York federal judge on Sept. 30 affirmed the decision (Lynda Berry v. Graphic Packaging International, Inc., No. 16-5817, S.D. N.Y.).
NEW YORK — New Chapter 11 debtor Garrett Motion Inc. on Sept. 24 had its adversary action challenging the corporate restructuring that sent it into bankruptcy holding the historic asbestos liabilities of Honeywell International Inc. transferred to New York federal bankruptcy court after removing the action from state court (In re Garrett Motion Inc., et al. [Garrett Motion Inc., et al. v. Honeywell International Inc., et al.], Chapter 11 No. 20-bk-12212, Adv. Proc. No. 20-ap-1223, S.D. N.Y. Bkcy.).
CHARLOTTE, N.C. — With all the work that Chapter 11 debtor DBMP LLC has done in the last three months litigating its request for an injunction to protect the company and its affiliates, including the former CertainTeed Corp., from asbestos claims while it reorganizes, the debtor needs more time to file a reorganization plan, it says in a Sept. 22 motion in North Carolina federal bankruptcy court (In re DBMP LLC, No. 3:20-bk-30080, W.D. N.C. Bkcy.).
PHILADELPHIA — While a Delaware federal bankruptcy court failed in following remand instructions in a long-running dispute over whether asbestos claimants can pursue state court claims against insurers of former Chapter 11 debtor W.R. Grace & Co., the Third Circuit U.S. Court of Appeals can now use the guidance of the Montana Supreme Court, which recently ruled on the same issues, two insurers tell the appeals court in their Sept. 22 opening brief (Continental Casualty Co., et al. v. Jeremy B. Carr, et al., No. 20-2171, 3rd Cir.).
CHARLOTTE, N.C. — Arguments made by an asbestos claimants' committee against appointing a future claimants' representative (FCR) proposed by Chapter 11 debtors Aldrich Pump LLC and Murray Boiler LLC are "completely contrary to the undisputed facts," the debtors say in a Sept. 22 objection to the committee's suggested candidate for the position (In re Aldrich Pump LLC, et al., No. 3:20-bk-30608, W.D. N.C. Bkcy.).
NEW YORK — Global auto parts maker Garrett Motion Inc., with a major manufacturing plant in Wuhan, China, filed for Chapter 11 protection Sept. 20 in New York federal bankruptcy court due to the "significant long-term burden" the company faces from the COVID-19 pandemic and the asbestos liabilities it inherited from Honeywell International Inc. (In re Garrett Motion Inc., et al., No. 20-bk-12212, S.D. N.Y. Bkcy.).
TACOMA, Wash. — A Washington federal bankruptcy judge on Sept. 3 increased by $10,000 the limit that Chapter 11 debtor Fraser's Boiler Service Inc. can pay one of three mediators to help settle asbestos personal injury claims (In re: Fraser's Boiler Service, Inc., No. 18-41245, W.D. Wash. Bkcy.).
NEWARK, N.J. — A federal judge on Sept. 3 granted preliminary approval to a $72.5 million settlement resolving claims that talc defendants and their attorneys hid or destroyed evidence of asbestos contamination (Kimberlee Williams, et al. v. BASF Catalysts LLC., et al., No. 11-1754, D. N.J.).
WILMINGTON, Del. — Indemnity claims filed by two talc mining companies against Johnson & Johnson (J&J) for asbestos claims do not belong in the court overseeing the Chapter 11 case of another talc supplier, Imerys Talc America Inc., J&J says in a Sept. 16 reply in Delaware federal bankruptcy court in support of its bid to dismiss the claims (In re: Imerys Talc America, Inc., et al. [Cyprus Mines Corporation, et al. v. Imerys Talc America, Inc., et al.], Chapter 11, No. 19-10289, Adv. Proc. No. 20-ap-50626, D. Del. Bkcy.).
NEW ORLEANS — Defendants in a case over a man's fatal lung cancer can present evidence of settlements he made before dying in asbestos bankruptcy cases and with asbestos trusts in order to calculate damages properly in the present case, a Louisiana federal judge ruled Sept. 16 (Callen Dempster, et al. v. Lamorak Insurance Co., et al., No. 20-95, E.D. La., 2020 U.S. Dist. LEXIS 169198).
HARTFORD, Conn. — The Connecticut Supreme Court on Sept. 14 rejected medical monitoring claims asserted in asbestos plaintiffs' class action, saying that even if the state recognized such claims, the cause of action would require expert testimony that the specific individuals suffered cellular changes and evidence supporting the relief (Danny Dougan v. Sikorsky Aircraft Corp., et al., No. SC20271, Conn. Sup., 2020 Conn. LEXIS 198).
WASHINGTON, D.C. — Garrett Motion Inc. and Honeywell International Inc. on Sept. 10 asked a New York justice for additional time to file a complaint and motion to dismiss in the two companies' dispute over the assignment of asbestos liabilities (Garrett Motion Inc., et al. v. Honeywell International Inc., et al., No. 657106/2019, N.Y. Sup., Comm. Div.).
ROME, Ga. — An insurer of Chapter 11 debtor The Fairbanks Co. is not entitled to reimbursement of $1.2 million in historical indemnity payments, overpayments or defense costs for asbestos personal injury claims based on its untimely reservation of rights or on any subrogation rights it has, a Georgia federal bankruptcy judge held Sept. 9 (In re The Fairbanks Company, No. 18-41768, N.D. Ga. Bkcy.).
OAKLAND, Calif. — An Alameda County jury hearing the first reported asbestos case to go to verdict since the novel coronavirus pandemic on Sept. 3 returned a verdict for Honeywell International Inc. (Ricardo Ocampo, et al. v. AAMCO Transmissions Inc., et al., No. RG19041182, Calif. Super., Alameda Co.).
WILMINGTON, Del. — Owens-Illinois Inc. affiliate and Chapter 11 debtor Paddock Enterprises LLC has more time to work on a consensual plan of reorganization after a Delaware federal bankruptcy judge on Aug. 20 approved an extension of the debtor's exclusive periods (In re Paddock Enterprises, LLC, No. 20-10028, D. Del. Bkcy.).
LITTLE ROCK, Ark. — An asbestos defendant's failure to support its "completely undeveloped and conclusory" motion to dismiss is not merely a "technical foot fault" and requires denial, a federal judge in Arkansas said Aug. 25 (Thomas Kimmons, et al. v. AutoZone Inc., et al., No. 19-876, E.D. Ark., 2020 U.S. Dist. LEXIS 154199).
WILMINGTON, Del. — Three asbestos personal injury claimants lost their bids to file late proofs of claim in the Chapter 11 case of Energy Future Holdings Corp. (EFH) on Aug. 27 when a Delaware federal bankruptcy judge found that the tardy filings "did not arise from excusable neglect" (In re: Energy Future Holdings, et al., No. 14-10979, D. Del. Bkcy., 2020 Bankr. LEXIS 2285).