Environmental Claims, CGL Policies and Bankruptcy
A Policyholder/Debtor with Comprehensive General Liability ("CGL") insurance has a strategic decision to make: Should the Policyholder/ Debtor protect and preserve its insurance for post-bankruptcy claims, or seek to maximize the insurance proceeds available to satisfy third-party claims? Although the Policyholder/Debtor cannot dictate how its policies are treated during the bankruptcy proceeding, without determining a strategy the Policyholder/Debtor cannot hope to influence the outcome. This article addresses the situation where a Chapter 11 Policyholder/Debtor faces third-party environmental claims. Although this area of law is still developing and varies from one jurisdiction to another, the Policyholder/Debtor should consider certain key issues when determining its strategy for dealing with its CGL insurers.
Grokster Wins Peer-to-Peer Battle
In what is poised to spark a debate of significant economic impact for the entertainment industry in the United States Supreme Court, a unanimous panel of the Ninth Circuit U.S. Court of Appeals recently ruled that Grokster, Ltd. and StreamCast Networks, Inc. ' distributors of the Morpheus program ' will live another day, as they do not infringe film and music copyrights by facilitating file-sharing over the Internet.
Successor Liability Claims in Bankruptcy
More often than not, bankruptcy filings lead to the sale of a business as a going concern. Such sales are frequently concluded prior to confirmation of a plan of reorganization by resort to Section 363 of the Bankruptcy Code. Section 363 authorizes the sale of a bankrupt company "free and clear of any interest in such property." 11 U.S.C. '363(f). Product liability claims, though, can occur suddenly and seemingly at random long after the sale of the assets to the successor. The successful purchaser may have thought that the "free and clear" sale order was a legal barrier to successor liability. The prudent product liability practitioner knows otherwise.
Case Notes
Highlights of the latest product liability cases from around the country.
Personal Injury Settlements with Minors: Avoiding Potential Pitfalls
You are involved in a products liability matter where one or more of the plaintiffs is a minor, which, in most jurisdictions, is a child under the age of 18. As with most claims, there is a strong likelihood that the ultimate resolution will be a settlement among the parties. Regardless of which party you represent, there are special considerations that come into play when a release and settlement involve a minor. Awareness of these considerations will greatly increase the chances that the release and settlement will withstand any future challenge.
Online: Web Site Addresses Product Safety Issues
If you need information on product recalls, unsafe products, or would like publications on a variety of consumer-related topics, visit the Web site for the U.S. Consumer Product Safety Commission (CPSC), <i>www.cpsc.gov</i>.
Practice Tip: Deciding Whether to Involve the Court in Confidential Matters
In a litigated dispute, the court is the referee between the parties, and the lawyers will routinely submit matters for its official approval. Agreements between the parties — such as agreements regarding document confidentiality or settlement — are much more easily enforced if entered as court orders rather than left as private contracts. Consequently, it is standard practice to reduce such agreements to orders.
Bit Parts
Recent developments in entertainment law.
