Justices Lean Toward Insurer in Asbestos Bankruptcy Dispute (2)

The US Supreme Court appeared inclined to allow an insurer to object to a bankruptcy plan that requires it to cover thousands of asbestos injury claims.

In Truck Insurance Exchange v. Kaiser Gypsum Co., the court is considering when insurers have standing to challenge plans proposed by entities in bankruptcy. Truck Insurance Exchange is asking the court to find that it has standing to object to wallboard manufacturer Kaiser Gypsum Co.'s Chapter 11 plan, because it requires the insurer to pay asbestos-related personal injury claims.

The court’s decision could have major ramifications for the growing world of mass tort ...