Insurers Win!April 1, 2012 – In The News
Insurance companies that were denied standing to challenge Thorpe Insulation Company’s plan of reorganization may be heard in the bankruptcy court, the U.S. Court of Appeals for the Ninth Circuit has ruled. This ruling will affect mass tort asbestos bankruptcies, and has the potential to affect commercial bankruptcies in general.
John R. Gotaskie, Jr., a partner at Fox Rothschild LLP, believes the Thorpe decision clarifies standing and insuranceneutrality standards in the Ninth Circuit. Gotaskie says, however, it’s not possible or wise to attempt to predict Thorpe’s impact on other 524(g) cases because the facts of each case are unique.