Insurance Litigation, Bankruptcy Code

Non-Creditor was Entitled to Actual Notice of A Chapter 11 Plan’s Injunction Barring Suits Against Insurance Carriers

Patterson Belknap Webb & Tyler LLP on 4/1/2025

A federal district judge recently affirmed a bankruptcy judge’s ruling that a non-creditor was entitled to actual notice of an injunction that would bar the non-creditor from suing the debtors’ insurance carriers. In re Boy...more

SDNY Bankruptcy Court Approves Settlement Agreements with Nonconsensual Third-Party Releases for Insurance Companies

DLA Piper on 1/8/2025

In the chapter 11 bankruptcy case of In re Roman Catholic Diocese of Rockville Centre, New York, Case No. 20-12345 (MG), the US Bankruptcy Court for the Southern District of New York recently approved settlement agreements...more

Court of Appeals Finds That Insurers May Not Participate in Bankruptcy Negotiations by Invoking an Insured’s Duty to Cooperate

Pillsbury Winthrop Shaw Pittman LLP on 4/10/2023

In rejecting an insurer’s attempt to block confirmation of its insured’s bankruptcy plan, the Fourth Circuit found that an insurer may not interject itself into plan negotiations by invoking the duty to cooperate, nor does...more

Third Circuit Remands W.R. Grace Decision Concerning Plan Channeling Injunction and Insurance Providers, Providing Additional...

Herbert Smith Freehills Kramer on 11/2/2018

In the wake of asbestos bankruptcies brought on by mass tort liabilities, reorganization plan structures, like that in Johns-Mansville, often funneled asbestos-related claims into a settlement trust, while a “channeling...more

Third Circuit Weighs In on Scope of Section 524(g)(4) Injunction

WilmerHale on 9/11/2018

Summary: A recent Third Circuit decision has clarified the scope of the third-party injunction, including injunctions in favor of insurers that resolve insurance coverage in asbestos bankruptcy cases, that may be issued under...more

Policyholders (and the Courts) Continue to Ignore Section 1123 When Analyzing Insured v. Insured Exclusions

Blank Rome LLP on 7/21/2017

Last month the United States Court of Appeals for the Sixth Circuit issued its anticipated decision in Indian Harbor Insurance v. Zucker, affirming a 2016 decision from a federal district court in Michigan that an Insured v....more