Subscribe: LexisNexis® Mealey's™ Asbestos Bankruptcy Legal News
http://feeds.feedburner.com/AsbestosBankruptcyLegalNews
Added By: Feedage Forager Feedage Grade B rated
Language: English
Tags:
asbestos  bankruptcy  case  circuit  claims  court  federal  garlock  john crane  judge  llc  sealing technologies  technologies llc 
Rate this Feed
Rate this feedRate this feedRate this feedRate this feedRate this feed
Rate this feed 1 starRate this feed 2 starRate this feed 3 starRate this feed 4 starRate this feed 5 star

Comments (0)

Feed Details and Statistics Feed Statistics
Preview: LexisNexis® Mealey's™ Asbestos Bankruptcy Legal News

LexisNexis® Mealey's™ Asbestos Bankruptcy Legal News



Headline Asbestos Bankruptcy Legal News from LexisNexis®



 



Insurer Cannot Litigate Coverage Dispute In State Court, Bankruptcy Judge Says
OAKLAND, Calif. - A California federal bankruptcy judge on Aug. 24 denied an insurer's request to sue a company's asbestos trust in state court over the amount of coverage owed for asbestos personal injury claims, issuing a strong rebuke to the insurer's attorneys, who claimed that the trustee knew the claims he submitted to the insurer did not trigger the polices at issue (In re CFB Liquidating Corporation, f/k/a Chicago Fire Brick Co., et al., No. 01-45483, N.D. Calif. Bkcy., 2017 Bankr. LEXIS 2411).



Arbitration Not Available For Coverage Dispute Based On Policy, Garlock Says
CHARLOTTE, N.C. - Former Chapter 11 debtor Garlock Sealing Technologies LLC does not have to arbitrate an insurance coverage dispute with an insurer based on the plain language of the 1983 policy at issue, Garlock and affiliates argue in a Sept. 22 response to the insurer's motion to force arbitration in North Carolina federal court (Safety National Casualty Corp. v. Garlock Sealing Technologies LLC, et al., No. 3:17-cv-00458, W.D. N.C.).



Kaiser Gypsum's Stay Lifted To Allow Appeals In Coverage Dispute
CHARLOTTE, N.C. - The primary asbestos insurer for Chapter 11 debtor Kaiser Gypsum Co. can pursue appeals of rulings in all three phases of coverage litigation in California state court, a North Carolina federal bankruptcy judge ruled in a Sept. 20 minute order lifting the automatic stay in the bankruptcy case to allow the appeals to proceed (In re Kaiser Gypsum Company, Inc., et al., No. 16-31602, W.D. N.C. Bkcy.).



Split 9th Circuit Sends Row Over Lawyer's Trust Claims Ban Back To Trial Court
SAN FRANCISCO - A California federal court must decide on remand whether federal or state law controls - and whether a Ninth Circuit U.S. Court of Appeals decision impacts - two asbestos trusts' attempt to enforce a settlement under which an attorney agreed to stop filing claims with the trusts due to his pattern of presenting unreliable evidence, a divided Ninth Circuit panel held Aug. 14 (Michael J. Mandelbrot, et al. v. J.T. Thorpe Settlement Trust and Thorpe Insulation Company Asbestos Settlement Trust, No. 15-56430, 9th Cir., 2017 U.S. App. LEXIS 17924).



3rd Circuit Affirms Asbestos Attorney's Overbilling Restitution Sentence
PHILADELPHIA - A lawyer who pleaded guilty to inserting his firm's clients as defendants and then billing them as if he represented them in the cases cannot contest a portion of his restitution sentence he claims was legitimately spent, the Third Circuit U.S. Court of Appeals held Aug. 29 (United States v. Arobert C. Tonagbanua, No. 17-1815, 3rd Cir., 2017 U.S. App. LEXIS 16506).



Finding That Bankruptcy Asset Sale Bars Take-Home Asbestos Case Stands
HARRISBURG, Pa. - The Pennsylvania Supreme Court on Sept. 8 declined to review an appellate court's rejection of a widower's attempt to hold a company liable for his wife's death from mesothelioma and finding that the company's "free and clear" purchase of assets in a bankruptcy court auction barred his take-home asbestos exposure claims (Jacqueline S. Wagner, et al. v. Standard Steel LLC, et al., No. 80 EAL 2017, Pa. Sup.).



Son's Constitutional Due Process Claims Against Trust Shot Down By Judge
WILMINGTON, Del. - A son cannot pursue claims that an asbestos personal injury trust violated his deceased father's constitutional rights because the trust is a private entity and is not an arm of the government, a Delaware federal judge held Sept. 22 (Matthew D. Pinnavaia v. The Celotex Asbestos Settlement Trust, No. 16-742, D. Del., 2017 U.S. Dist. LEXIS 155340).



Court Affirms Exclusion Of Asbestos Product ID Testimony As Sanction
CLEVELAND - A trial judge properly excluded deposition testimony as a sanction for failing to update interrogatories to indicate potential drywall compound exposures the witnesses testified to in asbestos bankruptcy claim forms, an Ohio appeals court held Sept. 7 (Paul Heaton, et al. v. Ford Motor Co., et al., No. 104636, Ohio App., 8th Dist., 2017 Ohio App. LEXIS 3800).



Railroad Asks Mississippi High Court To Allow Setoff Of FELA Asbestos Verdict
JACKSON, Miss. - The Mississippi Supreme Court should follow federal common law and allow a defendant to offset a Federal Employers' Liability Act (FELA) asbestos-related lung cancer award with recoveries the plaintiff received from asbestos bankruptcy trusts, a railroad argues in a Sept. 5 supplemental brief (Illinois Central Railroad Co. v. Bennie Oakes, et al., No. 2015-TS-00644, Miss. Sup.).



John Crane's RICO Suit Against Shein Firm Stayed Pending 7th Circuit Decision
PHILADELPHIA - A Pennsylvania federal judge on Sept. 7 stayed a case filed by John Crane Inc. (JCI) alleging fraud and racketeering claims against an asbestos plaintiffs' law firm pending a decision by the Seventh Circuit U.S. Court of Appeals in appeals filed by JCI and the law firm to the dismissal of identical claims by an Illinois federal court for lack of jurisdiction (John Crane Inc. v. Shein Law Center Ltd., et al., No. 2:17-cv-02210, E.D. Pa.).



Law Firm's 4th Circuit Appeal Dismissed As Per Garlock's Reorganization Plan
RICHMOND, Va. - The Fourth Circuit U.S. Court of Appeals on Sept. 7 dismissed an appeal filed by attorneys accused of fraud and racketeering by Chapter 11 debtor Garlock Sealing Technologies LLC after the parties agreed to drop the appeal as part of a global settlement ending Garlock's bankruptcy case (Garlock Sealing Technologies LLC, et al. v. Simon Greenstone Panatier Bartlett, APLC, et al., No. 15-2178, 4th Cir.).



Kaiser Gypsum Gets 3 More Months To File Reorganization Plan
CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge on Sept. 22 gave Chapter 11 debtor Kaiser Gypsum Co. three more months to file a plan of reorganization, despite unsecured creditors' concerns that the reorganization process is taking too long (In re Kaiser Gypsum Company, Inc., et al., No. 16-31602, W.D. N.C. Bkcy.).



Claims Against Garlock Face Asbestos Trust Procedures After Reclassification
CHARLOTTE, N.C. - A North Carolina federal bankruptcy judge agreed Sept. 25 to reclassify 72 claims against the bankruptcy estate of former Chapter 11 debtor Garlock Sealing Technologies LLC from general unsecured claims to asbestos claims (In re: Garlock Sealing Technologies, LLC, et al., No. 10-31607, W.D. N.C. Bkcy.).



Massachusetts Jury Awards $7.55M In Asbestos-Insulation Case
WOBURN, Mass. - A Massachusetts jury on Sept. 20 found a company liable under negligence and breach of warranty claims for its installation of asbestos-containing insulation and awarded a couple $7.55 million for a man's resulting mesothelioma (Gerald and Marjorie Sylvestre v. New England Insulation Co., et al., No.15-7031, Mass. Super., Middlesex Co.).



6th Circuit Affirms Dismissal Of Ship Owners In Asbestos Cases
DETROIT - Dismissal for ship owners for lack of jurisdiction in thousands of Merchant Marine asbestos cases was proper, the Sixth Circuit U.S. Court of Appeals held Sept. 13 (Henry Kalama, et al. v. Matson Navigation Co. Inc., et al., No. 16-3408, 6th Cir., 2017 U.S. App. LEXIS 17931).



John Crane Tells Court Errors In Asbestos Case Led To $3M Punitive Award
PORTLAND, Ore. - Evidentiary and other errors require a new trial in an asbestos case or, at the very least, require reversing a $3 million punitive damages award, John Crane Inc. told an Oregon court on Aug. 28 (Robert G. Sprague Jr., et al. v. A.W. Chesterton Co., et al., No. 15CV14771, Oregon Cir., Multnomah Co.).



Jurisdiction Plainly Lacking For Crane's RICO Claims, Law Firm Tells 7th Circuit
CHICAGO - A federal court in Illinois correctly dismissed fraud and racketeering claims leveled by frequent asbestos defendant John Crane Inc. (JCI) against two law firms and their principals for lack of jurisdiction because the asbestos cases giving rise to the claims did not occur in Illinois, one of the firms argues in an Aug. 16 brief to the Seventh Circuit U.S. Court of Appeals (John Crane Inc. v. Shein Law Center Ltd., et al., Nos. 17-1809 and 17-1926, John Crane Inc. v. Simon Greenstone Panatier Bartlett, et al., No. 17-1814, 7th Cir.).



Asbestos Trusts Seek To Protect Claimants' Data From Companies' Fraud Probe
WILMINGTON, Del. - A bankruptcy court properly placed limits on Honeywell International Inc. and Ford Motor Co.'s access to asbestos claimants' data from nine asbestos bankruptcy trusts, but it should have gone further and denied access altogether based on the "improper nature" of the companies' purpose for seeking access, the trusts argue in an Aug. 1 brief on appeal in Delaware federal court (In re: Motions Seeking Access to 2019 Statements, No. 16-1078, D. Del.).



Garlock Drops All Claims Against Law Firms Pursuant To Reorganization Plan
CHARLOTTE, N.C. - Chapter 11 debtor Garlock Sealing Technologies LLC on July 28 dismissed all five lawsuits it had filed in North Carolina federal court accusing asbestos plaintiffs' attorneys of fraud and racketeering, as was agreed to in the company's confirmed reorganization plan (Garlock Sealing Technologies, LLC, et al. v. Williams Kherkher Hart Boundas, LLP, et al., No. 3:12-ap-03137; Garlock Sealing Technologies, LLC, et al. v. Waters & Kraus, LLP, et al., No. 3:14-cv-130; Garlock Sealing Technologies, LLC, et al. v. Belluck & Fox, LLP, et al., No. 3:14-cv-118; Garlock Sealing Technologies, LLC, et al. v. Shein Law Center, Ltd., et al., No. 3:14-cv-137; Garlock Sealing Technologies, LLC, et al. v. Simon Greenstone Panatier Bartlett, a Professional Corporation, et al., No. 3:14-cv-116, W.D. N.C.).



Insurer Seeks To Force Arbitration Of Coverage Dispute With Garlock
CHARLOTTE, N.C. - An insurer of an affiliate of former Chapter 11 debtor Garlock Sealing Technologies LLC sued Garlock, its parent and another former debtor affiliate in North Carolina federal court on Aug. 2, seeking to force the Garlock parties to arbitrate a dispute over whether the insurer owes any money to the parties under an excess policy issued in 1983 (Safety National Casualty Corp. v. Garlock Sealing Technologies LLC, et al., No. 3:17-cv-00458, W.D. N.C.).



Rapid-American Protests Insurers' Subpoenas To Claims-Processing Facilities
NEW YORK - Chapter 11 debtor Rapid-American Corp. and the asbestos claimants in its case asked a New York federal bankruptcy judge on Aug. 15 to stop the debtor's insurers from enforcing subpoenas they issued to six asbestos claims-processing facilities, saying the subpoenas are "facially overbroad and seek material that is wholly irrelevant" to the issues in an insurance coverage adversary action (Rapid-American Corporation, et al. v. Travelers Casualty and Surety Company, et al., No. 15-01095, S.D. N.Y. Bkcy.).



Oakfabco Insurer To Pay $4.5 Million To Trust After Battle With Asbestos Claimants
CHICAGO - An Illinois federal bankruptcy judge on Aug. 4 approved a $4.5 million asbestos insurance coverage dispute settlement between Chapter 11 debtor Oakfabco Inc. and one of its insurers over objections by asbestos claimants' representatives, after the insurer added $1 million to the deal (In re: Oakfabco, Inc., No. 15-27062, N.D. Ill. Bkcy., 2017 Bankr. LEXIS 2201).



Judge Dismisses Asbestos Claimants' Appeal Of Energy Future's Plan
WILMINGTON, Del. - A Delaware federal judge on July 25 dismissed an appeal by four asbestos claimants battling Chapter 11 debtor Energy Future Holdings Corp. (EFH) over its handling of asbestos claims in its reorganization plan at the request of the claimants, who stipulated to dismissal of their appeal based on EFH's inability to consummate the plan (Shirley Fenicle, et al. v. Energy Future Holdings Corp., No. 17-229, D. Del.).



W.R. Grace Gets Extra Time To Resolve Final 2 Non-Asbestos Claims
WILMINGTON, Del. - A Delaware federal bankruptcy judge on Aug. 2 gave reorganized chemical conglomerate W.R. Grace & Co. additional time to resolve the final two non-asbestos claims of the more than 10,000 such claims filed during the company's drawn-out Chapter 11 case (In re: W.R. Grace & Co., et al., No. 01-01139, D. Del. Bkcy.).



9th Circuit Lifts Stay In Pfizer Asbestos Liability Case Involving Quigley
SEATTLE - The Ninth Circuit U.S. Court of Appeals on July 14 lifted a stay of an asbestos case asking whether Pfizer Inc. is liable for a subsidiary's products under the Restatement (Second) of Torts, but said the plaintiff may seek to reimpose the stay if the Washington Supreme Court accepts review of a similar case (Sharleen Sprague, et al. v. Pfizer Inc., No. 15-35051, 9th Cir.).



2nd Circuit Vacates Sheldon Silver's Conviction In Mesothelioma Referral Case
NEW YORK - A judge improperly instructed the jury that convicted former Speaker of the New York Assembly Sheldon Silver on the scope of conduct falling within honest services fraud and extortion charges under recent U.S. Supreme Court precedent, the Second Circuit U.S. Court of Appeals held July 13 in vacating his conviction involving mesothelioma referrals he sent to a law firm (United States of America v. Sheldon Silver, No. 16-1615, 2nd Cir.).



California Jury Awards Couple $5,321,050 For Man's Mesothelioma
OAKLAND, Calif. - A California jury on July 14 awarded $5,321,050 to a man who allegedly contracted mesothelioma after exposure to asbestos during underground work with cement pipe, sources told Mealey Publications (Frank Hart, et al. v. Calaveras Asbestos Ltd., et al., No. RG16838191, Calif. Super., Alameda Co.).



South Carolina Jury Awards $300,000 To Worker, Wife In Power Plant Asbestos Trial
SPARTANBURG, S.C. - A South Carolina state court jury on Aug. 3 awarded $300,000 to a former power plant inspector and his wife after finding that two defendants negligently exposed the worker to asbestos that caused his mesothelioma (Beverly Dale Jolly, et al. v. General Electric Company, et al., No. 2016-CP-43-01592, S.C. Comm. Pls., Spartanburg Co.).



Federal Jury Hearing Asbestos Case Returns Verdict For John Crane Inc.
MADISON, Wis. - A federal jury in Wisconsin returned a defense verdict for John Crane Inc. on July 19, finding that the company did not act negligently or defectively design or fail to warn about the alleged dangers posed by its asbestos-containing gaskets and packing (Patricia L. Carroll, et al. v. John Crane Inc., No. 15-373, W.D. Wis.).



9th Circuit Overturns Ruling Finding ASARCO's Cleanup Contribution Suit Untimely
SEATTLE - A Ninth Circuit U.S. Court of Appeals panel on Aug. 10 reversed a federal judge in Montana's ruling that a contribution lawsuit brought under Section 113(f) of the Comprehensive Environmental Response, Compensation, and Liability Act was barred by the statute of limitations, holding that American Smelting and Refining Co. LLC's (ASARCO's) claim did not arise until the entry of a 2009 consent decree with the U.S. Environmental Protection Agency (ASARCO v. Atlantic Richfield Company, No. 14-35723, 9th Cir., 2017 U.S. App. LEXIS 14781).



GM's Suit Against Manville Trust Barred By Injunction, Bankruptcy Judge Rules
POUGHKEEPSIE, N.Y. - General Motors LLC cannot sue Johns-Manville Corp.'s asbestos personal injury trust in Ohio state court to recover money for payments made to a widow because GM's claim for contribution is barred by the decades-old injunction issued in Johns-Manville's Chapter 11 case, a New York federal bankruptcy judge held July 24 (In re Johns-Manville Corporation, et al., No. 82-11656 [General Motors LLC v. Manville Personal Injury Settlement Trust, et al., No. 1:17-ap-1032], S.D. N.Y. Bkcy., 2017 Bankr. LEXIS 2063).



Appeals Court: Res Judicata Bars Claims, Offset For Trust Payments Proper
LOS ANGELES - A couple's previous asbestos action bars a widow's wrongful death action seeking loss of consortium, a California appeals court held July 11 while also concluding that the judge below properly offset an economic award for funeral and burial expenses with proceeds from settlements with asbestos bankruptcy trusts (Janet Stewart v. Union Carbide Corp., No. B267405, Calif. App., 2nd Dist., Div. 4).



Enough Evidence Exists To Continue Audit Of THAN Trust, Insurers Say
WILMINGTON, Del. - Insurers should be awarded summary judgment in their bid to force the T H Agriculture & Nutrition LLC (THAN) asbestos trust to comply with their audit rights because their initial court-ordered audit of the trust showed evidence of fraud and incorrect payments to asbestos claimants that the insurers were looking for, they argue in a July 14 brief in Delaware state court (AIU Insurance Company, et al. v. Philips Electronics North America Corporation, et al., No. 9852, Del. Chanc.).



7th Circuit Sends Jurisdiction Dispute In Crane's RICO Actions To Merits Panel
CHICAGO - A Seventh Circuit U.S. Court of Appeals judge on July 11 denied a bid by frequent asbestos defendant John Crane Inc. to strike a motion filed by a law firm accused by the company of fraud and racketeering to dismiss an appeal in the dispute, saying the dismissal motion will be decided by a merits panel (John Crane Inc. v. Shein Law Center Ltd., et al., Nos. 17-1809 and 17-1926, John Crane Inc. v. Simon Greenstone Panatier Bartlett, et al., No. 17-1814, 7th Cir.).



Pursuit Of In Personam Claims Against Johns-Manville Insurance Broker Debated
NEW YORK - An asbestosis sufferer and the longtime insurance broker for Johns-Manville Corp. continue to battle over whether the former can hold the latter liable for his injuries, with both filing the latest briefs July 7 in New York federal bankruptcy court on the lone remaining issue - whether any denial of due process would have resulted in prejudice to the claimant (In re Johns-Manville Corporation, et al., No. 82-11656, S.D. N.Y. Bkcy.).



Bankruptcy Judge Removes Consent Finding In Coverage Dispute Ruling
CHICAGO - An insurer successfully petitioned an Illinois federal bankruptcy judge to remove a finding in his ruling denying the insurer summary judgment in a coverage dispute with asbestos claimants in the Chapter 11 case of Oakfabco Inc. that the insurer waived its right to object to the ruling, according to a June 29 amended opinion (In re: Oakfabco, Inc., No. 15-27062, N.D. Ill. Bkcy., 2017 Bankr. LEXIS 1856).



Asbestos Claimants Drop Appeal Due To Failure Of Energy Future's Plan
WILMINGTON, Del. - Four asbestos claimants battling Chapter 11 debtor Energy Future Holdings Corp. (EFH) over its handling of asbestos claims in its plan to reorganize presented the Delaware federal court on July 21 with a proposed stipulation and order dismissing the claimants' appeal of the plan confirmation, due to EFH's inability to consummate the plan (Shirley Fenicle, et al. v. Energy Future Holdings Corp., No. 17-229, D. Del.).



Court: Pfizer Didn't Put Itself Out As Manufacturer Of Quigley Asbestos Products
SEATTLE - Pfizer Inc. did not put itself out as the apparent manufacturer of Quigley Co. Inc.'s asbestos-containing products under the Restatement of Torts, a Washington appeals panel held June 26 in an opinion of first impression (Margaret Rublee, et al. v. Carrier Corp., et al., No. 75009-7-I, Wash. App., Div. 1, 2017 Wash. App. LEXIS 1488).



W.R. Grace Seeks Time To Resolve Final 2 Non-Asbestos Claims
WILMINGTON, Del. - Reorganized chemical conglomerate W.R. Grace & Co. asked a Delaware bankruptcy court July 14 for more time to resolve, hopefully consensually, the final two non-asbestos claims of the more than 10,000 such claims filed during the company's drawn-out Chapter 11 case without having to file an objection to the claims (In re: W.R. Grace & Co., et al., No. 01-01139, D. Del. Bkcy.).



ASARCO's Contribution Suit Stayed By Judge Pending Cleanup Plan's Approval
SALT LAKE CITY - A federal judge in Utah on July 11 stayed a lawsuit brought by American Smelting and Refining Co. LLC (ASARCO) seeking contribution toward $8.7 million it has spent remediating a former mining site near Park City, Utah, pending the U.S. Environmental Protection Agency's approval of a cleanup plan (ASARCO LLC v. Noranda Mining Inc., No.12-cv-527 DN, D. Utah, 2017 U.S. Dist. LEXIS 107957).



Florida High Court Will Review Asbestos Causation Experts, Resulting $8M Award
TALLAHASSEE, Fla. - The Florida Supreme Court agreed to decide the proper standard for admitting expert causation testimony in the state when on July 11 it accepted a case that originally resulted in an $8 million asbestos award against tobacco and gaskets companies (Richard DeLisle v. Crane Co., et al., No. SC16-2182, Fla. Sup.).



Judge Unseals Documents Within Crime-Fraud Exception In Asbestos-Tainted Talc Case
NEWARK, N.J. - A judge in New Jersey on July 7 unsealed a pair of special discovery master opinions involving the crime-fraud exception to attorney-client privilege in an asbestos-talc case. The documents remain provisionally sealed so that the parties can appeal the ruling (Audrey Sampson, et al. v. 3M Co., et al., No. MID-L-5384-11AS, N.J. Super., Middlesex Co.).



Florida Jury Returns $6,785,000 Verdict In Mesothelioma Case
FORT LAUDERDALE, Fla. - A Florida jury on July 6 awarded a mesothelioma victim's widow $6,785,000 and found lone remaining defendant John Crane Inc. 75 percent liable for the maintenance worker's injuries (Joyce Moore, et al. v. John Crane Inc., No. 13-011729 [27], Fla. Cir., Broward Co.).



Court Affirms Asbestos Verdict For Service Station Owner, Automobile Manufacturer
LOS ANGELES - Even if replacement brake pads contained asbestos during the times in question, there is no evidence that an automaker's brake assembly would not work with asbestos-free brakes, and the evidence at trial suggests that a service station provided service and was not in the stream of commerce of automobile parts, a California appeals court held July 5 in affirming a verdict (Joseph Petitpas v. Ford Motor Co., et al., No. B245037, Calif. App., 2nd Dist., 2017 Cal. App. LEXIS 604).



Fresh New York Asbestos CMO Permits Punitive Damages, Loosens Some Evidence Rules
NEW YORK - New York asbestos plaintiffs may pursue punitive damage claims going forward under a newly instituted case management order (CMO) that also includes changes to hearsay rules designed to help offset the negative impact such a change will have on defendants, the coordinating justice said June 20 (In re: New York City Asbestos Litigation, All Asbestos Cases., No. 40000/88, N.Y. Sup., New York Co.).