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Bruce Engel Analyzes SCOTUS Ruling with InsuranceNewsNet


Bruce Engel Analyzes SCOTUS Ruling with InsuranceNewsNet

July 3, 2024
Bruce M. Engel

In June, the Supreme Court of the United States ruled that insurers with financial responsibility for bankruptcy claims are sufficiently affected by proceedings to be a party in interest, and therefore, can raise objections to reorganization plans. Goldberg Segalla partners Bruce M. Engel, Jeffrey L. Kingsley, and Richard A. Galbo co-authored an extensive write-up about the decision and what the ramifications may be for insurers.

In a recent article published by InsuranceNewsNet, the publication reached out to Bruce to gather more of his thoughts regarding the Supreme Court’s decision. Bruce discussed what insurance companies need to know moving forward.

“…When they are involved as an insurer in a bankruptcy proceeding which involves asbestos, but also in other mass tort type of situations, that they now have a definitive right to be heard by the bankruptcy court, and the right to object to any of these reorganization plans that may impact the insurer who may be really the only party who has a real financial stake in the matter at the end of the day,” he said.

According to Bruce, situations such as this case (Truck Insurance Exchange v. Kaiser Gypsum Company, Inc., et al), arise quite often in the commercial insurance realm.

“It happens frequently with general liability policies, because they are longtail claims,” he said. “This happens with cases involving asbestos, or similar types of claims where the insured is faced with the normal claims and goes to the bankruptcy courts for protection. So this arises in connection not only with asbestos, but with abuse claims, pollution-type claims, claims that a product caused cancer.”

Bruce also advised commercial insurers to “review how any proposed reorganization plan might affect their rights and to be involved in the bankruptcy proceedings because they are now a party in interest and have the right to object to any plans that may harm their interests.”

“I believe this ruling gives the insurers, who are the ones who ultimately may end up paying these types of claims, a firmer stance to have a say in the reorganization plans,” he added.

READ THE FULL ARTICLE HERE: Court rules that insurers are parties of interest in bankruptcy proceedings,” InsuranceNewsNet, June 21, 2024


Bruce M. Engel focuses his practice on a wide range of complex insurance and reinsurance litigation, arbitrations, mediations, coverage analysis, and counseling. He represents insurers and reinsurers in coverage and reinsurance disputes, using litigation, arbitration, and negotiated settlements to achieve the best business outcome for his clients.