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Mealey's Asbestos Bankruptcy

November 20, 2024
Talc Claimants Appeal Automatic Stay Ruling In J&J’s 3rd Spinoff Bankruptcy

HOUSTON — A coalition of attorneys for thousands of asbestos talc plaintiffs appealed to a federal district court a decision by a Texas federal bankruptcy judge in an adversary action that the plaintiffs’ claims against the latest Johnson & Johnson (J&J) spinoff, Red River Talc LLC, and its affiliates are blocked for now by the automatic bankruptcy stay.
November 19, 2024
Compelling Arbitration, Judge Says MOU Is ‘Closely Related’ To Reinsurance Contract

LOS ANGELES — Concluding that a 1984 memorandum of understanding (MOU) is “closely related to the reinsurance contract and not a completely separate agreement,” a California federal judge granted reinsurers’ motion to compel arbitration in a lawsuit over reinsurance billings arising from asbestos bodily injury claims.
November 18, 2024
Delaware Judge Won’t Modify Receivership Over Asbestos Company

WILMINGTON, Del. — A Delaware judge declined to modify a receivership to permit the marshalling of a dissolved company’s assets and defense of asbestos claims in four cases spread out over three states after an insurance company argued that the modification would skip procedures already put in place and essentially grant the relief sought by the original petition.
November 14, 2024
Revlon Talc Claimants’ Direct Appeal Request Debated In 2nd Circuit

NEW YORK — The Second Circuit U.S. Court of Appeals should reject a petition for a direct appeal of a New York federal bankruptcy judge’s decision barring asbestos talc plaintiffs from pursuing claims against former debtor Revlon Inc. under the discharge and injunction provisions of its confirmed Chapter 11 plan of reorganization and instead send the dispute to a district court to review the questions presented “in the first instance,” the reorganized debtor says in an opposition brief.
November 13, 2024
Restrictions Granted In Asbestos Coverage Dispute Involving Liquidated Insurer

OMAHA, Neb. — In docket-only orders, a Nebraska federal magistrate judge granted motions to restrict access to certain documents by National Indemnity Co. (NICO) and Horace Mann Insurance Co., including briefs related to summary judgment motions, in NICO’s suit seeking to enforce obligations by multiple insurers, one of whom is now insolvent, for the liability NICO incurred related to claims for asbestos exposure.
November 08, 2024
Disclosure Statements For Asbestos Talc Debtors Imerys, Cyprus Mines Approved

WILMINGTON, Del. — A Delaware federal bankruptcy judge approved the disclosure statements for the reorganization plans of affiliated Chapter 11 asbestos talc debtors Imerys Talc America Inc. and Cyprus Mines Corp., overruling objections to the statements by a claimants’ law firm and the U.S. trustee and setting a date for the plans’ confirmation hearing.
November 08, 2024
La. Panel Vacates Order For Lack Of Admissibility Ruling In Asbestos Coverage Row

BATON ROUGE, La. — A Louisiana appellate panel vacated and remanded a lower court ruling that denied a motion for summary judgment filed by a company that purportedly used asbestos-containing products in an asbestos liability suit filed against it and multiple defendants, including a now-insolvent insurer, finding that the lower court incorrectly denied summary judgment to the company without ruling on the parties’ objections to the evidence.
November 05, 2024
Validity Of Kaiser’s Bankruptcy Plan Debated On Remand From Supreme Court

RICHMOND, Va. — Now that the U.S. Supreme Court has determined that the primary insurer of Chapter 11 asbestos debtors Kaiser Gypsum Co. Inc. and Hanson Permanente Cement Inc. has standing to object to the debtors’ reorganization plan, the Fourth Circuit U.S. Court of Appeals should uphold the insurer’s merits arguments and reverse confirmation of the plan, the insurer says in its Nov. 4 supplemental reply brief on remand from the high court.
November 05, 2024
Judge Stays J&J Effort To Remove Counsel From Talc MDL

TRENTON, N.J. — The effort to disqualify and remove the Beasley Allen law firm from the talc multidistrict litigation steering committee is on hold after a federal judge in New Jersey stayed the effort in the wake of a ruling by the judge overseeing a J&J entity’s bankruptcy saying the automatic stay should apply.
November 04, 2024
Reorganizing In Face Of Asbestos Claims Is Valid Goal, Georgia-Pacific Spinoff Says

RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals should affirm a bankruptcy court’s denial of a “belated and meritless” motion to dismiss the Chapter 11 case of Georgia-Pacific spinoff Bestwall LLC by the Official Committee of Asbestos Claimants because Bestwall has “a valid reorganizational purpose” and “sufficient financial distress” to pursue relief in good faith under the U.S. Bankruptcy Code, the debtor says in a Nov. 1 response brief.
November 01, 2024
Asbestos Bankruptcy Claimants Take Stay Relief Denial Ruling To 4th Circuit

CHARLOTTE, N.C. —A federal judge in North Carolina affirmed a bankruptcy court’s decision not to lift the automatic stay for two asbestos cases, agreeing that allowing the cases to proceed in state court could threaten the DBMP LLC bankruptcy process. The claimants filed a notice of appeal to the Fourth Circuit U.S. Court of Appeals in the wake of the ruling.
October 30, 2024
Arbitration Bid Fought In Reinsurance Billing Row Involving MOU

LOS ANGELES — Urging a California federal court to reject an arbitration bid in a lawsuit over reinsurance billings arising from asbestos bodily injury claims, an insurer contends that the abstention doctrine doesn’t apply and that the arbitration clause is in a different agreement than the one at issue and doesn’t include the present billing dispute.
October 29, 2024
Day-Late Filing In Asbestos Trust Suit Rejected By Delaware Top Court

WILMINGTON, Del. — An appeal filed a day late prevents jurisdiction over the case, a defect that cannot be remedied, the Delaware Supreme Court said in dismissing an appeal from a ruling finding that the statute of limitations on a man’s asbestos case began at the time of his autopsy and barred a case against a bankruptcy trust.
October 28, 2024
J&J’s Latest Debtor Opposes Claimant’s Counsel’s Bid For Venue Reconsideration

HOUSTON — A request by certain asbestos talc claimants’ counsel for reconsideration of an order denying their motion to transfer venue for the Chapter 11 case of the latest Johnson & Johnson (J&J) spinoff, Red River Talc LLC, should be denied because it is based on “the blatantly false allegation” that the debtor and J&J’s previous debtor are the “same entity,” Red River says in an Oct. 25 objection filed in Texas federal bankruptcy court.
October 23, 2024
Receiver, Talc Claimants Seek 3rd Circuit Reversal Of Chapter 11 Dismissal Denial

PHILADELPHIA — The board of directors of defunct talc supplier Whittaker, Clark & Daniels Inc. (WCD) had no authority to place the company into bankruptcy because its court-appointed receiver has “exclusive authority to manage WCD’s affairs,” the receiver and a committee of asbestos claimants tell the Third Circuit U.S. Court of Appeals in a consolidated appeal of a New Jersey federal bankruptcy judge’s denial of the receiver’s bid to dismiss the company’s Chapter 11 case.
October 22, 2024
Georgia-Pacific Spinoff’s Committee Gets Amici Backing In Effort To Dismiss Case

RICHMOND, Va. — The Chapter 11 case of Georgia-Pacific spinoff Bestwall LLC should be dismissed because the protections of bankruptcy are not intended for companies that are not in financial distress, and the civil justice system is well prepared to handle mass tort litigation for asbestos claims when an asbestos trust is not the proper vehicle to handle the claims, as Bestwall asserts, the American Association for Justice and an ad hoc group of other asbestos claimants tell the Fourth Circuit U.S. Court of Appeals in amicus curiae briefs in support of the Official Committee of Asbestos Claimants.
October 22, 2024
Asbestos Claimants Appeal Plan Confirmation For Cosmetics Company Ben Nye

SAN FRANCISCO — Asbestos plaintiffs and law firms appealed the confirmation of the Chapter 11 Subchapter V plan of reorganization for family-run cosmetics company Ben Nye Co. Inc. to the Ninth Circuit U.S. Court of Appeals Bankruptcy Appellate Panel (BAP), along with the bankruptcy court’s approval of a bar date for filing proofs of claim for asbestos personal injury claims.
October 22, 2024
Virginia Jury Awards $3.45 Million In Millwright Mesothelioma Case

NEWPORT NEWS, Va. — A Virginia jury awarded the widow of a former millwright who developed fatal mesothelioma after occupational asbestos exposure $3.5 million in her case against John Crane Inc., sources told Mealey Publications.
October 21, 2024
Reinsurers Move To Compel Arbitration In Billings Dispute Involving MOU

LOS ANGELES — Arguing that a dispute over reinsurance billings arising from asbestos bodily injury claims falls within the scope of the “broad” arbitration agreement in the excess of loss reinsurance treaty at issue, reinsurers in an Oct. 18 motion ask a California federal court to compel arbitration and dismiss or stay the case.
October 17, 2024
New York Justice Denies Dismissal Of Estee Lauder Asbestos Cancer Case

NEW YORK — A New York state court justice denied a cosmetic company’s motion to dismiss a suit alleging that exposure to asbestos within its talc products led to a woman’s mesothelioma, finding that the statute of limitations began when doctors actually diagnosed the woman and that tolling instituted during the coronavirus pandemic applied.
October 16, 2024
Connecticut Jury Hits J&J Entities With $15 Million Talc Verdict

BRIDGEPORT, Conn. — A jury in Connecticut on Oct. 15 awarded a man and his wife $15 million in their asbestos-talc suit against Johnson & Johnson (J&J) and various related entities and triggered a punitive damages phase that by state law will be decided by the judge in the future, sources told Mealey Publications.
October 16, 2024
Summary Judgment Granted For Guaranty Association In Asbestos Coverage Dispute

NEW ORLEANS — A Louisiana federal judge granted summary judgment to the Louisiana Insurance Guaranty Association (LIGA), the purported statutory obligor for insurance policies issued by a now-insolvent insurer of the defendants sued by a now-deceased man alleging that workplace exposure to asbestos caused his mesothelioma, finding that the wrongful death claims filed by the man’s wife and two daughters are barred by the insurance liquidator’s deadline to file claims.
October 15, 2024
Magistrate Judge Finds Access Paramount, Won’t Seal Asbestos Settlement Documents

NEW YORK — A federal magistrate judge in New York largely declined to redact names and amounts from documents related to court approval of a $600,000 settlement of asbestos claims against various talc defendants, saying the approval requires consideration of whether the agreement is fair and reasonable and should be available for public consumption and that nothing warrants redacting attorney fee information.
October 15, 2024
9th Circuit Panel Reverses Government Contractor Win For Asbestos Plaintiffs

SAN FRANCISCO — A judge erred in granting summary judgment to a family on a government contractor defense in a maritime asbestos case under Boyle v. United Techs., when Yearsley v. W.A. Ross Const. Co. was both cited by the defendant and permits the defense, a panel of the Ninth Circuit U.S. Court of Appeals said in an unpublished opinion reversing.
October 14, 2024
Talc Supplier Presperse Gets Approval For Future Asbestos Claimants’ Representative

TRENTON, N.J. — The New Jersey federal bankruptcy judge overseeing the new Chapter 11 case of raw materials supplier Presperse Corp. appointed the debtor’s candidate to represent the future holders of asbestos personal injury claims against the company, with no other candidates being proposed and no objections to the appointment filed.