3rd Circuit Sua Sponte Orders Rehearing En Banc on Signficant Chapter 11 Mass Tort Case

After oral argument about a year ago, the 3rd Circuit has now sua sponte issued an order for reargument en banc in the important GIT mass tort chapter 11 case. Among other things, the case raises the question whether 1123(a)(5) can preempt anti-assignment provisions in insurance contracts. 19 state Attorneys General have filed an amicus brief in the GIT case to urge the 3rd Circuit to block the efforts of the debtor and the asbestos and silica plaintiff’s bar to use bankruptcy court preemption powers to give asbestos and silica claimants exclusive access to GIT’s insurance policies. The case also raises tawdry fact issues regarding generating a silica trust out of just a few claims. Some of the facts are set in past Globaltort posts here and here provide more information.

Important issues ? You bet,. Imagine how the rulings might apply to insurance for the oil rig fiasco.

#Bankruptcy