Jun
18
2009
Travelers Indem. Co. v. Bailey
The Bankruptcy Court for the Southern District of New York found that a 1986 injunction in a debtor's reorganization plan, which barred actions against liability insurers of the debtor, applied to lawsuits brought directly against the insurers by claimants. Upon the grant of a writ of certiorari, the insurers appealed the judgment of the U.S. Court of Appeals for the Second Circuit which held that the claimants' lawsuits were not subject to the bankruptcy injunction.
Ruling:
Injunction barring direct actions against insurers of asbestos products manufacturer issued by bankruptcy court more than two decades ago was not subject to jurisdictional attack.
ABI Membership is required to access the full summary of Travelers Indem. Co. v. Bailey. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member
Commercial case opionion summary, case decided on June 18,2009, LexisNexis #0709-068