Continental Casualty Co. v. Carr, et al.

Case Type:
Case Status:
17-1208 (3rd Circuit, Aug 14,2018) Published
The Third Circuit Court of Appeals affirmed the Bankruptcy Court in part and vacated and remanded in part. The plaintiffs' recovery under the Asbestos Lawsuits is barred because the CNA insurance policies are covered by the Channeling Injunction. In addition, the plaintiffs' claims do not fall within the Channeling Injunction's exclusions related to workers' compensation benefits. The Circuit Court, however, vacated and remanded to the Bankruptcy Court as to whether the asbestos plaintiffs' claims may be enjoined under § 524(g)(4) of the Bankruptcy Code.
Procedural context:
United States Bankruptcy Court for the District of Delaware granted summary judgment in favor of CNA in an adversary proceeding commenced by CNA seeking to bar the Asbestos Lawsuits. Opinion by Third Circuit Court of Appeals on direct appeal under 28 U.S.C. § 158(d)(2) from the United States Bankruptcy Court for the District of Delaware.
A group of individuals suffering from asbestos disease as a result of exposure to W.R. Grace & Co.'s and its related entities' ("Grace's") asbestos mining and processing operations in Libby, Montana sought via state court personal injury actions to hold Grace’s insurers, Continental Casualty Company and Transportation Insurance Company (collectively “CNA”), liable under various state-law negligence theories for their injuries (the "Asbestos Lawsuits"). At the time the Asbestos Lawsuits were commenced, CNA had already settled with Grace regarding its coverage for asbestos personal injury claims, and, pursuant to a confirmation plan that had already become effective, CNA was the beneficiary of a third-party-claims channeling injunction (the "Channeling Injunction") that CNA claimed barred the Asbestos Lawsuits.
Ambro, Circuit Judge

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