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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.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.
Coverage Issues Stemming from Dry Cleaner Contamination Suits
In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?