The United States Court of Appeals for the Third Circuit held that a channeling injunction entered in the Chapter 11 bankruptcy proceeding of W.R. Grace & Co. (Grace) protected one of its insurers, Continental Casualty Company and Transportation Insurance Company (CNA), from claims that CNA was independently liable for asbestos-related injuries because it was negligent in providing industrial hygiene services in conjunction with worker’s compensation and employer’s liability policies it issued to Grace.
Mass-tort liability drove Grace into Chapter 11 bankruptcy reorganization. The Bankruptcy Code …
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