The U.S. Supreme Court will soon hear arguments in a case determining whether Truck Insurance Exchange must show it will be adversely affected by a proposed reorganization plan of two bankrupt manufacturers facing underlying asbestos injury claims, after already having the opposition blocked by the Fourth Circuit.
Sheri Pastor, Chair of the Insurance Recovery, Litigation & Counseling Practice spoke with Law360 and said that what the insurer really seeks is “almost a sea change of how the courts would be addressing standing in bankruptcy proceedings.” Pastor added, “I don’t think that Truck is concerned about the efficiency, the success or the fair reorganization of bankruptcy. What it’s really interested in, is how does it get out from under the fact that it wrote policies that have a $500,000 per claim limit and how does it get out from under the coverage rulings already adverse to it?”