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Mealey's Asbestos Bankruptcy

  • October 16, 2018

    Federal Judge Sends Claims Against Libby, Mont., Railway Back To State Court

    GREAT FALLS, Mont. — A Montana federal judge agreed with a magistrate judge on Oct. 15 and remanded to state court asbestos liability class claims against a railway that had been stayed by the bankruptcy case of W.R. Grace & Co. pursuant to the local controversy exception to federal jurisdiction (Korey L. Aarstad, et al. v. BNSF Railway Company, et al., No. 4:17-cv-72, D. Mont., 2018 U.S. Dist. LEXIS 176843).

  • October 15, 2018

    Duro Dyne’s Disclosure Statement Under Attack From U.S. Trustee, Insurers

    TRENTON, N.J. — The disclosure statement for recent Chapter 11 debtor Duro Dyne National Corp.’s prenegotiated plan of reorganization cannot be approved because it fails to mention that the plan does nothing to guard against fraud, the U.S. trustee argues in an Oct. 4 objection filed in New Jersey federal bankruptcy court (In re:  Duro Dyne National Corp., et al., No. 18-27963, D. N.J. Bkcy.).

  • October 10, 2018

    Insurers, Law Firm Settle ERISA Case Involving Asbestos Trust Fund Recoveries

    DALLAS — Health insurers and an asbestos litigation firm on Oct. 5 settled a Texas federal court case alleging that the firm withheld bankruptcy trust recoveries to which the Employee Retirement Income Security Act and Medicare insurance plans were contractually entitled for costs associated with treating the firm’s plaintiffs (Humana Inc., et al. v. Shrader & Associates LLP, No. 16-354, S.D. Texas).

  • September 26, 2018

    U.S. Trustee Opposes Duro Dyne’s Choice For Future Claimants’ Representative

    TRENTON, N.J. — A longtime representative for future asbestos claimants in corporate bankruptcies may not be the best candidate for future claimants’ representative (FCR) in the new Chapter 11 case of Duro Dyne National Corp. because of possible “disqualifying conflicts of interest,” the U.S. trustee says in a Sept. 26 objection to the proposed appointment (In re: Duro Dyne National Corp., et al., No. 18-27963, D. N.J. Bkcy.).

  • September 25, 2018

    Insurer Takes Fight To Arbitrate Garlock Coverage Dispute To 4th Circuit

    CHARLOTTE, N.C. — An asbestos insurer on Sept. 17 asked the Fourth Circuit U.S. Court of Appeals to decide if a North Carolina federal court correctly ruled that the insurer’s obligations to the Garlock Sealing Technologies LLC bankruptcy estate under a $5 million policy must be determined through litigation, not arbitration (Safety National Casualty Corp. v. Garlock Sealing Technologies LLC, et al., No. 3:17-cv-00458, W.D. N.C.).

  • September 25, 2018

    Judge Cuts Punitives From $11,406,500 Los Angeles Asbestos Water Pipe Verdict

    LOS ANGELES — A Los Angeles judge on Aug. 16 entered a corrected judgment on a jury’s $11,406,500 asbestos verdict against a water company after lopping off the $5 million punitive damage award but otherwise leaving the verdict intact (Alfred Mata v. Air & Liquid Systems Corp., No. BC655564, Calif. Super., Los Angeles Co.).

  • September 25, 2018

    Jury Returns Verdict Of $7,024,000 In Buffalo Asbestos Trial

    BUFFALO, N.Y. — A New York jury on Sept. 14 awarded $7,024,000 in a man’s mesothelioma case alleging exposure to asbestos in valves, sources told Mealey Publications (James Stock Jr. v. Air & Liquid Systems Corp., et al., No. 807846/2017, N.Y. Sup., Erie Co.).

  • September 25, 2018

    California Jury Can’t Reach Verdict In Latest Asbestos-Talc Case

    LOS ANGELES — A California judge presiding over the latest trial featuring claims of asbestos-tainted Johnson & Johnson baby powder declared a mistrial on Sept. 24 after the jury informed her that it was deadlocked and could not reach a verdict, sources told Mealey Publications (Carolyn Weirick v. Brenntag North America, et al., No. BC656425, Calif. Super., Los Angeles Co.) VIDEO FROM THE TRIAL IS AVAILABLE.

  • September 24, 2018

    Bankruptcy Judge Delays Hearing For Chapter 11 Dismissal Bid

    CHARLOTTE, N.C. — A North Carolina federal bankruptcy judge on Sept. 14 postponed a hearing on asbestos claimants’ request to dismiss the Chapter 11 case of Georgia-Pacific affiliate Bestwall LLC to give her the “significant amount of time” needed to hear the dispute (In re Bestwall LLC, No. 17-31795, W.D. N.C. Bkcy.).

  • September 24, 2018

    Placing Limits On Access To Asbestos Trust Data Proper, 3rd Circuit Told

    PHILADELPHIA — A federal bankruptcy court did not abuse its discretion in placing limits on how Ford Motor Co. and Honeywell International Inc. can use asbestos claimants’ information from nine bankruptcy trusts, the committees that oversee the trusts tell the Third Circuit U.S. Court of Appeals in a Sept. 21 appellee brief (In re:  AC&S, Inc., et al., No. 18-1951, 3rd Cir.).

  • September 24, 2018

    John Crane’s Fraud, RICO Suit Against Law Firm Dismissed

    PHILADELPHIA — A Pennsylvania federal judge on Sept. 10 dismissed John Crane Inc.’s fraud allegations against an asbestos plaintiffs’ law firm after the parties said they reached an undisclosed settlement in principle (John Crane Inc. v. Shein Law Center Ltd., et al., No. 2:17-cv-02210, E.D. Pa.).

  • September 21, 2018

    Judge Affirms $3.5 Million Award To Asbestos Trust Against Fire Brick Insurer

    OAKLAND, Calif. — A California federal bankruptcy judge properly entered a more than $3.5 million judgment against an insurance company in a long-running dispute over the amount of coverage owed to a company’s liquidating trust for asbestos personal injury claims, a federal judge held Sept. 17 in affirming the award, plus a $60,000 penalty for the insurer’s “vexatious and unreasonable conduct” (Continental Casualty Company v. Barry A. Chatz, Nos. 17-cv-05281, 17-cv-06989, N.D. Calif., 2018 U.S. Dist. LEXIS 158352).

  • September 19, 2018

    Federal Judge Sides With W.R. Grace In Refund Dispute With IRS

    WILMINGTON, Del. — A Delaware federal judge on Sept. 17 affirmed a bankruptcy court’s finding that the interest rate in the reorganization plan for former Chapter 11 debtor W.R. Grace & Co. must be used when determining how much the Internal Revenue Service owes the company for a tax refund (United States v. W.R. Grace & Co., et al., No. 17-cv-1588, D. Del., 2018 U.S. Dist. LEXIS 157895).

  • September 14, 2018

    United States: Medicare Repayment Must Be Part Of Debtor’s Asbestos Trust

    CHARLOTTE, N.C. — Chapter 11 debtor Kaiser Gypsum Co. on Sept. 13 sought approval of its reorganization plan’s disclosure statement on the same day the United States filed a statement in interest in the case, saying it will oppose any plan for the debtor that does not include provisions to ensure that asbestos disease claimants who receive payments from an asbestos trust repay Medicare for their medical care (In re Kaiser Gypsum Company, Inc., et al., No. 16-31602, W.D. N.C. Bkcy.).

  • September 14, 2018

    New York Court Affirms Increased Asbestos Award For Past Pain And Suffering

    NEW YORK — A trial court properly granted a new trial on past pain and suffering damages unless the defendant agrees to a $4 million award, but the $1.5 million award for future damages did not exceed what was reasonable and should not have been increased, a New York appellate court held Sept. 13 (In re New York City Asbestos Litigation, Ann Marie Idell, etc. v. Aerco International Inc., et al., No. 190219/16 -6938 6937 6936, N.Y. Sup., App. Div., 1st Dept., 2018 N.Y. App. Div. LEXIS 6018).

  • September 14, 2018

    Claimant Says 3rd Circuit Ruling On W.R. Grace Insurer Liability Affects Her Case

    WILMINGTON, Del. — A recent Third Circuit U.S. Court of Appeals remand ruling seeking Delaware federal bankruptcy court decisions on what asbestos claims, if any, insurers of former Chapter 11 debtor W.R. Grace & Co. are liable for needs to be addressed in a similar action alleging negligence against the insurers, the plaintiff in that action tells the bankruptcy court in a Sept. 10 brief filed at the request of the court (In re:  W.R. Grace & Co., et al., No. 01-01139, D. Del. Bkcy.).

  • September 11, 2018

    Asbestos Claims Send Sheet Metal Company Into Chapter 11

    TRENTON, N.J. — Family-owned sheet metal equipment company Duro Dyne National Corp. sought Chapter 11 protection on Sept. 7 in New Jersey federal bankruptcy court to shed the business of its asbestos personal injury claims while remaining operational (In re: Duro Dyne National Corp., et al., No. 18-27968, D. N.J. Bkcy.).

  • September 11, 2018

    California Jury Pins $8.45M Asbestos Verdict, 60 Percent Liability On Weil-McLain

    LOS ANGELES — A California jury awarded $8.45 million in an asbestos case against boiler company Weil-McLain on Aug. 28, sources told Mealey Publications (Shawn Swanson, et al. v. Weil-McLain, et al., No. BC571451, Calif. Super., Los Angeles Co.).

  • September 10, 2018

    Alameda County Jury Returns $1,117,446 Verdict In Asbestos-Pipe Case

    OAKLAND, Calif. — A California jury on Aug. 14 awarded $1,117,446, and though it found the defendant not negligent, it did find the company’s asbestos-containing pipe defective and that the company should have known of the risk (Carolyn B. Hopper, et la. V. California Department of Water Resources, et al., No. RG16815417, Calif. Super., Alameda Co.).

  • September 6, 2018

    Appeals By Bankrupt Boiler Company’s Insurers Proceed Without U.S. Trustee

    TACOMA, Wash. — The U.S. trustee’s office for the Western District of Washington made clear in a Sept. 4 letter to the court that it is not participating in two appeals filed by nonsettling insurers in the Chapter 11 case of Fraser’s Boiler Service Inc., saying it is not a proper appellee (In re:  Fraser’s Boiler Service, Inc., Nos. 3:18-cv-05637 and 3:18-cv-05638, W.D. Wash.).