on Feb 11, 2013 2:30:00 AM
On January 10, 2013, the United States Court of Appeals for the 2nd Circuit heard oral arguments on the fate of Travelers $510,000,000 asbestos settlement. The statutory direct action settlement counsel had appealed the district court’s March 1, 2012, order which had overturned the settlement.
This case involves Travelers 2003 agreement to pay $445,000,000 to thousands of asbestos disease victims. The bankruptcy court, after Travelers reneged, added $65,000,000 in interest to the settlement.
Travelers refused to fund the settlement after the 2nd Circuit ruled that Chubb Insurance had not received constitutionally sufficient notice of the 1986 Johns-Manville bankruptcy proceedings. Travelers is attempting to use that technicality in order to void the 2003 settlement.
Asbestos victims’ attorneys argued that the Chubb decision does not invalidate the settlement and that Travelers should comply with the terms of the agreement immediately. The 2nd Circuit is expected to issue its decision on the enforceability of the settlement later this year.
Thornton Law Firm represents thousands of mesothelioma victims and victims of other asbestos-related diseases. If you or a loved one has questions about mesothelioma, asbestos disease or the Travelers settlement, please contact us to speak with our experienced and caring attorneys. Our toll-free telephone number is 888-632-0108.