News & Analysis as of

Chapter 11 Debtors Insurance Industry

Tyson & Mendes LLP

A Seat at the Table: Supreme Court Rules Insurers Have a Right to Be “Heard on Any Issue” in Chapter 11 Cases

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On June 6, 2024, the United States Supreme Court issued its long-awaited ruling in Truck Insurance Exchange v. Kaiser Gypsum Co., Inc., et al. The Court held an insurer with financial responsibility for claims in bankruptcy...more

Rivkin Radler LLP

Supreme Court Finds Insurers Have Standing in Chapter 11 Bankruptcy Proceedings

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The U.S. Supreme Court on June 6, 2024, held that an insurer with a financial responsibility for bankruptcy claims is a party in interest and has standing to raise and be heard on issues in a Chapter 11 proceeding. In Truck...more

Cozen O'Connor

Supreme Court Orders Stand Down on Insurance Neutrality Test for Standing

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On June 6, 2024, the United States Supreme Court issued its long-awaited ruling in Truck Insurance Exchange v. Kaiser Gypsum Co., Inc., et al.,1 nullifying the insurance neutrality test for insurer standing in bankruptcy...more

A&O Shearman

US Supreme Court gives standing to insurers in Chapter 11 bankruptcy proceedings

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Opinion has potential implications for a broader set of parties with potential liabilities affected by a Chapter 11 process. In Truck Ins. Exch. v. Kaiser Gypsum Co., Inc., No. 22-1079, 2024 U.S. LEXIS 2483 (June 6,...more

McGuireWoods LLP

Shifting Gears on Insurer Participation in Chapter 11 Proceedings: U.S. Supreme Court Rejects Longstanding “Insurance Neutrality”...

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Last week’s Privilege Point described an opinion requiring a corporate party’s witness to disclose communications with his Latham & Watkins lawyers, because he confirmed with that firm his own “commercial understanding” about...more

Kennedys

Insurer deemed “party in interest” in insureds’ Chapter 11 case

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The US Supreme Court ruled that an insurer with financial responsibility for bankruptcy claims is a “party in interest” under Bankruptcy Code §1109(b) that “may raise and may appear and be heard on any issue” in a Chapter 11...more

Goldberg Segalla

U.S. Supreme Court Holds that Insurers are Parties in Interest in Bankruptcy Proceedings and Can Object to Reorganization Plans

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Companies faced with numerous mass tort claims, such as asbestos claims, often seek bankruptcy protection. Reorganization plans may include § 524(g) channeling injunctions in which insurance assets are put into a trust to pay...more

White and Williams LLP

Supreme Court Endorses Broad Insurer Standing in Bankruptcy Reorganizations

The Supreme Court reversed the Fourth Circuit Court of Appeals in favor of insurance companies in a unanimous decision written by Justice Sotomayor. In short, the United States Supreme Court held today that insurers facing...more

Hinshaw & Culbertson - Insights for Insurers

How Several U.S. Supreme Court Cases This Term Will Significantly Impact Insurers

Insurers are impacted in many ways by the United States (U.S.) Supreme Court decisions, but very rarely does the Supreme Court wade into decisions directly involving insurance contracts or the rights of insurers. This term,...more

Lowenstein Sandler LLP

High Court Should Maintain Insurer Neutrality In Bankruptcy

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A recent Expert Analysis article penned by Frank Perch, "High Court Should Endorse Insurer Standing In Bankruptcy," advocates for the U.S. Supreme Court, in Truck Insurance Exchange v. Kaiser Gypsum Company Inc., to adopt a...more

Rivkin Radler LLP

Creditors Committee’s Request to Sue Diocese Insurers Denied

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Recently, a bankruptcy judge denied a request by a creditors’ committee to sue the insurers of the Roman Catholic Diocese of Rockville Centre (the “Debtor”). The judge found that the Official Committee of Unsecured...more

White and Williams LLP

Fourth Circuit Holds That Cooperation Clause Does Not Apply to Insured's Conduct in Negotiating Bankruptcy Plan

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In Hanson Permanente Cement, Inc. v. Kaiser Gypsum Co. (In re Kaiser Gypsum Co.), ____ F. 4th ____, 2023 U.S. App. LEXIS 3482 (4th Cir. Feb. 14, 2023), the Fourth Circuit ruled that an insured’s obligations under a typical...more

Carlton Fields

Accidentally On Purpose: Washington Court Finds Coverage For Contempt Of Court Based On “Misunderstanding”

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Professional liability policies cover claims based on the insured’s alleged negligent acts, errors or omissions, and not claims for “sanctions or penalties” for “willful” professional misconduct. But the insurer’s duty to...more

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