TBA Law Blog


Posted by: Stacey Shrader Joslin on Jun 6, 2024

The U.S. Supreme Court ruled 8-0 today that insurers have a broad right to weigh in on bankruptcies that may put them on the hook for paying claims. The decision is a victory for an insurer challenging the restructuring plan of a manufacturer of asbestos-containing products, Reuters reports. The opinion, written by Justice Sonia Sotomayor, held that Truck Insurance Exchange should have been allowed to object to Kaiser Gypsum's proposed $50 million settlement of thousands of asbestos-related lawsuits through its Chapter 11 bankruptcy reorganization, because the deal would be funded largely by the company's insurance policies.