Although Plaintiff’s Claims Within 1986 Manville Settlement Order, Case Remanded to Bankruptcy Court to Determine If Plaintiff Received Due Process

The plaintiff, Salvador J. Parra, Jr., developed asbestosis after working as an insulator and sued Marsh USA, Inc., an insurance broker, and others. Marsh filed a motion in the bankruptcy cases of Johns-Manville, arguing it was relieved of liability for the plaintiff’s claims. The bankruptcy court granted the motion, and the plaintiff appealed. The district court affirmed in part, reversed in part, and remanded the case to the bankruptcy court for further proceedings.

Marsh was Manville’s primary insurance broker from 1944-1982. Manville had sued Marsh, …

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Bankruptcy Stay Lifted Against Defendant/Debtor to Allow Plaintiffs to Pursue State Law Claims

In this case, the defendant that used asbestos in some of its production while in business filed chapter 11. There remained 123 claims against the defendant and the defendant’s proposed chapter 11 plan stated that the “liability issues will pass through the bankruptcy and be tried in non-bankruptcy courts having jurisdiction.” The defendant objected to the Asbestos Committee’s motion to lift the automatic stay, arguing the stay should remain in place pending plan confirmation.

In its analysis, the court applied the Fernstrom three-part balancing test …

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