Asbestos Bankruptcies
Ninth Circuit Holds Insurers Have Standing to Challenge Asbetsos Bankruptcy Plan PDF Print
Asbestos Bankruptcies
Written by CBM   
Friday, 27 January 2012 00:00

In the Matter of Thorpe Insulation Co., No. 10-56543 (9th Cir. January 24, 2012), the Ninth Circuit held that insurers had standing to challenge an asbestos defendant’s Chapter 11 plan of reorganization because, although the plan claimed to be insurance-neutral, it "may have a substantial economic impact on the insurers."

The court also held that the challenge was not moot despite the fact that the plan had already been implemented because the plan had not been substantially completed and the bankruptcy court could fashion equitable remedies that would protect asbestos claimants and not render the plan unworkable. The court further held that the Bankruptcy Code expressly preempted anti-assignment provisions in the insurers’ policies. 

A detailed summary of the case is below.

 In the Matter of Thorpe Opinion[ ]151 Kb
The MDL Judge That May Change Asbestos Litigation PDF Print
Asbestos Bankruptcies
Written by CBM   
Tuesday, 18 August 2009 10:19
An article in the Southeast Texas Examinier makes predictions on Judge Eduardo Robreno approach to the U.S. Multi District Litigation on asbestos and its effect on the future of asbestos litigation stating, Judge Robreno " becoming known for changing the way plaintiff attorneys present, and manage, asbestos litigation and its supporting evidence...[and by year's end] he will have made decisions that could permanently change asbestos litigation in America, especially when it comes to the thousands of cases that feature evidence from the physicians in question."  Read more.
New Trial Lawyers Article Discusses Business Model Of Asbestos Litigation PDF Print
Asbestos Bankruptcies
Written by Gretchen Ramos   
Monday, 02 June 2008 09:04

In its May 2008 edition, Trial Lawyers Inc., analyzes the asbestos litigation business model.  The report concludes that solving absusive asbestos litigation requires judges to take steps to ensure that claims are legitimate and to scrutinize settlements to ensure that they are fair, and  legislatures to develop a comprehensive federal solution.  The articles suggests the following reforms: (1) real medical standards of evidence by applied; (2) revision of joint and several liability laws to protect defendants;  (3) adoption of transparency rules to ensure asbestos claimants are not double-dipping into bankruptcy trusts and multiple jurisdictions.   A copy of the report can be found here.

W.R. Grace & Co. Settles Asbestos Claims PDF Print
Asbestos Bankruptcies
Written by CBM   
Tuesday, 08 April 2008 09:21

W.R. Grace & Co. announced in bankruptcy court Monday April 7 settlements in principle resolving all current and future asbestos claims, allowing the company to emerge from bankruptcy without the threat of future asbestos claims.  Attorneys for the asbestos claimants estimate the settlement value as high as $3 billion.  Bankruptcy Judge Judith Fitzgerald, overseeing the W.R. Grace bankruptcy, must still approve the settlement.

W.R. Grace had been named in approximately 110,000 suits before entering bankruptcy in 2001.  It will be required to pay $250 million into a plaintiff trust fund immediately, $110 million per year from 2019-2023, and $100 million per year from 2024-2033.  W.R. Grace's spokesman Bill Corcoran says that the trust may file claims against $917 million in insurance.

See more in this Wall Street Journal article.


Insurers to Federal-Mogel to pay $500 million for asbestos liabilities PDF Print
Asbestos Bankruptcies
Written by CBM   
Sunday, 30 March 2008 16:38

A federal bankruptcy judge ruled today that more than two dozen insurers that issued over $500 million dollars in coverage to Federal-Mogel may have to pay into a trust for FM's asbestos product's liabilities under Chapter 11 bankruptcy plan approved last year.   

Click here for the full article from The Detroit News.


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