Wilmington and Philadelphia partner Andy Kassner and associate Joe Argentina co-authored an article for the Legal Intelligencer titled, “Who Can Complain?” The article discusses In re Global Industrial Technologies, Inc., a case decided by the Third Circuit Court of Appeals in May.
That case concerned Section 524(g) of the Bankruptcy Code, which authorizes a company facing asbestos claims to channel present and future claimants into a claims resolution process. The court was tasked with determining the standing of insurance companies to object to such a plan -- a decision that deeply divided the en banc panel.
Andy and Joe discuss the case in depth, with particular focus on the majority opinion that excess policy insurers who may be ultimately responsible for paying silica-related claims had standing to object to confirmation of the debtors’ plan of reorganization.
They conclude that the decision will no doubt “be cited by parties arguing for the right to participate in bankruptcy cases for years to come. We imagine the Dissent may be referred to as well for the opposite point of view.”