Month: June 2024

The U.S. Supreme Court unanimously ruled on Thursday that an insurer has the right to object to a company’s bankruptcy settlement involving asbestos mass tort claims.

This decision overturns a previous ruling by the 4th U.S. Circuit Court of Appeals in Richmond, Virginia, in the case of Truck Insurance Exchange v. Kaiser Gypsum. The appellate court had determined that the insurer could not object to the settlement because it was deemed insurance neutral.

Justice Sonia Sotomayor, writing for the Supreme Court, stated, “The fact that Truck’s financial exposure may be directly and adversely affected by a plan is sufficient to give Truck a right to voice its objections.”

Kaiser Gypsum filed for bankruptcy in September 2016 due to facing 38,000 asbestos injury lawsuits dating back to 1978. In August 2021, a federal bankruptcy judge in Virginia approved its Chapter 11 reorganization plan, which included establishing a $50 million settlement trust for asbestos injury claims.

Truck Insurance Exchange, a unit of Farmers Group Inc., provided commercial general liability policies to Kaiser Gypsum from the 1960s until 1983. The focus of Truck’s objection was a 1974 policy that offered $500,000 in coverage per claim with no aggregate limit.

Despite Truck’s attempts, both a federal judge in Richmond and the 4th U.S. Circuit Court of Appeals ruled that it did not have standing to object to the reorganization plan. Truck argued that it potentially faced the financial burden of 14,000 insured claims against Kaiser Gypsum and that only uninsured claims had fraud-prevention measures.

The Supreme Court emphasized that “broad participation promotes a fair and equitable reorganization process,” highlighting that insurers like Truck, who have financial responsibility for bankruptcy claims, are indeed parties in interest.

The high court noted that neither Kaiser Gypsum nor the asbestos claimants have an incentive to limit the defense and payment of injury claims. Truck, however, “may well be the only entity with an incentive to identify problems with the plan,” it stated.

Justice Alito did not participate in the consideration or decision of the case.

Allyson N. Ho of Gibson Dunn & Crutcher, representing Truck, expressed satisfaction with the ruling: “We’re very pleased that the Supreme Court unanimously held that insurers have a direct and obvious interest in their insured’s reorganization, and so have a broad right to be heard in bankruptcy cases.”

Representatives for Kaiser Gypsum did not respond to requests for comment.

A man who spent over a year cutting asbestos sheets without protective gear has received a six-figure compensation award.

David Lawrence, diagnosed with mesothelioma—a type of incurable cancer—after exposure to deadly fibers at a former builders’ merchant, expressed his dismay. The 79-year-old from Maldon, Essex, stated, “It was wrong that our former employers knowingly put us all in danger.”

Lorna Webster, the solicitor handling his case, emphasized that “no amount of compensation” could restore Mr. Lawrence’s previously good health.

In 1961, Mr. Lawrence worked in the cutting area at John Sadd & Sons in Maldon, slicing asbestos sheeting into strips for builders to use as soffits under house guttering. His solicitor noted that he was not provided with any protective equipment to prevent inhalation of asbestos dust.

Due to his diagnosis, Mr. Lawrence struggled to leave his house and had to abandon his hobbies. “It is unfair that people who worked hard like me were put in such danger by our employers,” he said. He urged anyone who has worked in similar environments to seek medical and legal help, even if the company is no longer in business.

John Sadd & Sons, established in 1729 in the coastal town, closed its doors in 1994.

Mr. Lawrence has received support from the London Asbestos Support Awareness Group (LASAG), although the exact amount of his compensation remains undisclosed.

Mesothelioma is a cancer that develops in the lining covering the outer surface of some of the body’s organs, typically linked to asbestos exposure and currently incurable, though treatments can alleviate symptoms.

The insurance company responsible for the compensation payout was contacted for comment by the BBC.

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A man who spent over a year cutting asbestos sheets without protective gear has received a six-figure compensation. David Lawrence, diagnosed with mesothelioma, an incurable cancer, was exposed to hazardous fibres at a former builders’ merchant.

The 79-year-old from Maldon, Essex, expressed his dismay, stating, “It is wrong that our former employers knowingly put us all in danger.” His solicitor, Lorna Webster, emphasized that “no amount of compensation” could restore Mr. Lawrence’s health.

In 1961, Lawrence worked in the cutting area at John Sadd & Sons in Maldon, slicing asbestos sheeting into strips for builders to use as soffits under house guttering. His employer did not provide any protective equipment to prevent inhalation of asbestos dust.

Due to his diagnosis, Mr. Lawrence now struggles to leave his house and has had to abandon his hobbies. He remarked, “It is unfair that people who worked hard like me were put in such danger by our employers.” He urged others in similar environments to seek medical and legal help, even if their companies are no longer in business.

John Sadd & Sons, established in 1729, closed in 1994. Mr. Lawrence has received support from the London Asbestos Support Awareness Group (LASAG), though the exact compensation amount remains undisclosed.

Mesothelioma, a cancer affecting the lining of some body organs, is typically linked to asbestos exposure and is incurable, though treatments can alleviate symptoms. The insurance company responsible for the payout was contacted for comment by the BBC.