Insurer

Supreme Court Greenlights Insurer Challenges to Mass-Tort Bankruptcy Strategies

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Washington — In a significant legal decision, the Supreme Court has empowered insurance companies to challenge the bankruptcy plans of companies facing mass-tort liabilities. This ruling could reshape the landscape of bankruptcy law and its interplay with mass-tort settlements. The case stems from a scenario where insurance firms disagreed with a bankruptcy plan proposed by a company beleaguered by numerous lawsuits. Traditionally, such financial restructurings seek to consolidate and settle debts, including potential lawsuit settlements. The justices held that insurers whose policies are implicated have the standing to contest these plans, a stance that might … Read more

Supreme Court Rules on Insurance Neutrality: What Debtors Need to Know About Insurer Challenges in Mass Tort Bankruptcies

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Washington — A recent Supreme Court ruling has set the stage for significant transformations in the handling of insurance claims within mass tort bankruptcies. In a decision that underscores the need for debtors to be more vigilant, the court sided with insurers, demanding that claims be treated with stricter scrutiny to prevent potential inequities. This new judgment addresses the often contentious issue of “insurance neutrality,” a legal stance where bankruptcy filings should not affect the handling of insurance claims. Previously, companies under mass tort claims, such as those associated with asbestos-related liabilities or large-scale product … Read more

Insurer Exempt from Paying Multimillion-Dollar Jury Verdict in Construction Lawsuit

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New York — A New York state appeals court recently ruled in favor of an insurance company, relieving it from covering a multi-million award stemming from a construction dispute associated with a luxury condominium project. This pivotal decision underscores the intricate distinctions often contained within commercial insurance policies regarding what liabilities are effectively covered. The lawsuit originated from project disputes where the contractor, BuildItRight Inc. (fictitious name), faced litigation brought on by the condominium developers, alleging construction deficiencies that led to substantial water damage in the newly built luxury condos. The resulting jury trial led … Read more

Insurer Standing in Bankruptcy Cases: A Controversial Debate that Could Impact Mass Tort Resolutions

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Houston, Texas – Insurers seeking broad standing in mass tort bankruptcy cases face opposition from legal experts. The U.S. Supreme Court is considering whether to endorse insurer standing in the case of Truck Insurance Exchange v. Kaiser Gypsum Company Inc., with some arguing that a broad view of insurer standing would eliminate obstacles to resolving insurer objections. However, experts argue that insurers’ claims are based on two fallacies and that expanding their standing would only lead to unnecessary delays in bankruptcy proceedings. The first fallacy criticized by legal experts is the notion that the goal … Read more