Chapter 11 Strategies After Truck Ins. Exchange v. Kaiser Gypsum: Insurer Rights in Policyholder Bankruptcies
Impact of Increased Insurer Involvement; Role of Insurance Neutrality Provisions; Opportunities for Broad Releases, Injunctions
Recording of a 90-minute CLE video webinar with Q&A
This CLE webinar will discuss the implications of Truck Insurance Exchange v. Kaiser Gypsum Co. Inc., 601 U.S. ___ (June 6, 2024), on insurers, debtors, injured plaintiffs, and other key bankruptcy participants regarding how they negotiate plans involving insurance-funded settlements, what types of insurer-related provisions should be in plans, and objections and responses to disclosure statements and plan confirmation. The course will review the decision, address workarounds for the insurer objections mentioned in the decision, offer insight on how the holding will change the bankruptcy calculus, and suggest strategies for addressing these changes.
Outline
- Overview of Truck Insurance Exchange v. Kaiser Gypsum Co. Inc.
- Possible ways to address specific objections raised by Truck Insurance
- Strategies going forward
Benefits
The panel will consider these and other key issues:
- Whether and how the Truck Insurance decision will alter the landscape of Chapter 11 proceedings that involve policyholders facing mass tort and other multiple-victim claims?
- Can all insurers take advantage of Truck Insurance or just those who actually have accepted financial responsibility for claims?
- What is the role and content of insurance neutrality provisions in the wake of Truck Insurance?
- What is the role and content of the standing doctrine in the wake of Truck Insurance?
- Is the next step for insurers to try to create/find an argument that their interest can be leveraged into a voting right? Is the right to object tantamount to the right to vote?
- Can a plan to which insurers do not consent be confirmed?
- If insurers raise coverage issues, will bankruptcy courts weigh in on policy interpretation or insurance law?
- What does the duty to cooperate look like for a debtor-in-possession?
- What impact will additional insurer participation have on settlement and resolution of claims and on the substance of trust distribution procedures?
- Will additional participation of insurers delay proceedings, alter resolution, and decrease the fraud, duplicative recoveries, excessive compensation, and compensation to uninsured claimants that insurers contend is taking place?
Faculty
![Alfano, Andrew](/img/t/7b2c45c9d7dc23501d663e8f284c7f6e.jpg)
Andrew V. Alfano
Counsel
Pillsbury Winthrop Shaw Pittman
Mr. Alfano represents creditors and debtors in complex insolvency matters, both domestically and internationally. His... | Read More
Mr. Alfano represents creditors and debtors in complex insolvency matters, both domestically and internationally. His practice spans a variety of industries, including aviation and pharmaceuticals.
Close![Burns, Timothy](/img/t/97438f2b897a380532430321045c4f50.jpg)
Timothy W. Burns
Partner
Burns Bair
Mr. Burns combines a deep understanding of insurance law and the insurance industry with a broad understanding of the... | Read More
Mr. Burns combines a deep understanding of insurance law and the insurance industry with a broad understanding of the civil litigation system that allows him to bring creative solutions to high-stakes problems.
Close![Seaman, Scott M.](/img/t/bb36a0610191cc5815c990ead4790af1.jpg)
Scott M. Seaman
Co-Chair Global Insurance Services Practice Group
Hinshaw & Culbertson
Mr. Seaman is a commercial litigator and trial lawyer with more than 35 years of experience. Scott is widely regarded... | Read More
Mr. Seaman is a commercial litigator and trial lawyer with more than 35 years of experience. Scott is widely regarded as one of the leading attorneys in the United States representing insurers and reinsurers in property and casualty matters. He is known for employing his deep knowledge of the law and insurance industry, strategic thinking, and honed trial and appellate advocacy to produce creative solutions and outstanding results for clients. Clients regularly turn to Scott and his team for counsel and representation in challenging and high-stakes insurance and business matters. Mr. Seaman has a long track record of successfully representing companies before trial courts, appellate courts, and arbitration panels across the country in a variety of cases and matters involving general liability coverage (primary, umbrella, and excess), professional liability coverage, directors and officers liability insurance, first-party property coverage, bad faith and extra-contractual matters, fee disputes, and facultative and treaty reinsurance contracts. He also advises and represents companies on cyber, privacy, data breach, IoT, nanotechnology, gig economy, viruses and pandemics, representations and warranties, transactional insurance, social unrest, ESG, climate change, and other emerging issues, as well as a wide-range of case-specific and portfolio issues. He also has handled a variety of challenging international, professional liability, health/life science, director and officer liability, tort and product liability, and business and commercial cases.
He was named to the inaugural list of Midwest Trailblazers by The American Lawyer magazine for his "high-profile, complex insurance coverage cases nationwide, which resulted in precedent setting rulings that have altered insurance law." He is co-author of Allocation of Losses in Complex Insurance Coverage Claims (11th Ed. 2023) He is ranked Band I by Chambers USA.
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