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Insurers' Standing in Three Asbestos-Related Bankruptcy Cases
Asbestos-related litigation has forced at least 70 companies into bankruptcy, with more than 30 filing since 2000 alone. RAND Institute for Civil Justice, Asbestos Litigation Costs and Compensation: An Interim Report (2002); The Asbestos Alliance, Asbestos by the Numbers (2004). Meanwhile, the outlook remains uncertain for a federal legislative solution. In the bankruptcy courts, companies, insurers, claimants and judges will be forced to grapple with a variety of issues regarding the appropriate use of Section 524(g) of the Bankruptcy Code. Central to these disputes is the extent to which insurers have standing to raise issues regarding the debtors' bankruptcy filings and the provisions of their reorganization plans. In this article, we discuss recent rulings addressing insurers' standing in three asbestos-related bankruptcies: In re Mid-Valley, Inc., In re Congoleum Corporation, and In re Western Asbestos Company.
The Mid-Valley court ruled that the insurers lacked standing to seek dismissal of the debtors' bankruptcy petition and to challenge the appointment of the future claims representative, but found that the insurers had standing to be heard at the confirmation hearing regarding whether the plan impacted their rights. In Congoleum, the court ruled that the insurers did not have standing to object to the disclosure statement, but did have a practical stake in the debtors' proposed plan and would be allowed to take discovery and be heard on a variety of issues at the confirmation hearing. The debtors responded by modifying their plan to attempt to make it “insurance neutral,” but the court reaffirmed its earlier ruling and held that the insurers remained parties in interest. In Western Asbestos, the court ruled as part of its confirmation decision on an issue-by-issue basis regarding the insurers' standing to raise certain objections. Overall, the court concluded that the insurers had standing to raise a variety of issues regarding their rights and the amounts made available by the debtors to compensate the asbestos claimants.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.