The U.S. Supreme Court agreed to hear a case in which an insurance company is challenging a bankruptcy reorganization plan that it says doesn’t protect it against fraudulent claims tied to asbestos exposure, WSJ Pro Bankruptcy reported. Truck Insurance Exchange is seeking to overturn a ruling by a U.S. appeals court that rejected the insurer’s challenge and allowed the bankruptcy reorganization plan of defunct cement maker Kaiser Gypsum to go forward. The insurer’s opposition centered on arguments that the Kaiser Gypsum bankruptcy plan would allow asbestos injury plaintiffs to pursue fraudulent claims against its policies. Insurance companies have made similar arguments in bankruptcy cases of the Boy Scouts of America and some Catholic dioceses involving sexual-abuse claims. Insurers have appealed the Boy Scouts of America’s bankruptcy settlement, and are challenging the plan put forward by the Diocese of Camden in New Jersey over similar issues.
