May 29, 2007
New Jersey Judge Rejects "Prepackaged" Asbestos Bankruptcy
Law.com reports that New Jersey Judge Nicholas J. Stroumtsos has ruled that insurers do not have to pay asbestos claims against Congoleum, a manufacturer of flooring tiles. Congoleum has been in bankruptcy court since late 2003 as part of a "prepackaged bankruptcy" settlement with asbestos victims. Judge Stroumtsos used strong words condemning the "bad faith" deal: "GHR [Gilbert Heintz & Randolph] colluded with [Joseph] Rice [of Motley Rice] and [Perry] Weitz [of Weitz & Luxenberg] to create a framework that would provide Congoleum with both the insurance money and also protect against the asbestos liability, while leaving the insurance companies to bear the costs."
The Wall Street Journal has a link to the decision.
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» More press coverage on Congoleum from PointOfLaw Forum
From the New Jersey Law Journal (via Childs) and the WSJ op-ed page. We covered the New Jersey court's decision in Congoleum v. ACE American Insurance Co., Mid-L-8908-01 (Mercer County, NJ 2007) with many links on May 21.... [Read More]
Tracked on May 29, 2007 5:06:25 AM