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Truck Insurance Exchange v. Kaiser Gypsum Company, Inc., et al.

Paid petition · United States Court of Appeals for the Fourth Circuit, No. 21-1858 · judgment February 14, 2023


Decided · June 6, 2024
Pre-decision estimate: 17% cert probability (95% interval 10%–26%)

Before the decision, about 4× the 4.1% base rate. The model weighted this up for counsel with five or more prior petitions here, a circuit split argued in the petition, and a petition filed soon after the judgment below, and down for a business respondent.

Question presented

Asbestos claims in state court have been plagued by rampant fraud, with claimants seeking inflated recoveries against some asbestos defendants by suppressing evidence of claims against other asbestos defendants. For nearly a decade, bankruptcy courts have sought to protect debtors and their insurers by requiring fraud-prevention measures-like ensuring access to claims information-before channeling the asbestos claims against the debtor to a trust. See 11 U.S.C. § 524(g). In this case, a Chapter 11 debtor colluded with representatives for asbestos claimants to propose and confirm a plan that includes these fraud-prevention measures only for uninsured asbestos claims-not insured asbestos claims. Petitioner is the insurer who bears the financial burden of those 14,000 insured claims. The Bankruptcy Code's plain text empowers any "party in interest" to "raise" and "be heard on any issue" in a Chapter 11 proceeding. 11 U.S.C. § 1109(b). But the court of appeals refused to adjudicate petitioner's objections to the fraud and collusion, relying on judge-made limitations engrafted onto the Code. The question presented is: Whether an insurer with financial responsibility for a bankruptcy claim is a "party in interest" that may object to a Chapter 11 plan of reorganization. Justice Alito took no part in the consideration or decision of this petition

Counsel of record

For petitioner
Allyson Ho
Gibson, Dunn & Crutcher LLP

For respondent
David C. Frederick
Kellogg, Hansen, Todd, Figel & Frederick, P.L.L.C.

Case

Conference history
Distributed for 3 conferences

Amicus briefs
1 cert-stage · 7 merits
(3 supporting pet./neither, 4 respondent)

Argument & decision

Argued March 19, 2024 — Allyson N. Ho · C. Kevin Marshall · David C. Frederick. Audio and transcript

Decided June 6, 2024. Opinion by Sotomayor.

Proceedings

  1. Jul 08 2024
    Judgment Issued.
  2. Jun 06 2024
    Judgment REVERSED and case REMANDED. Sotomayor, J., delivered the opinion of the Court, in which all other Members joined, except Alito, J., who took no part in the consideration or decision of the case.
  3. Mar 19 2024
    Argued. For petitioner: Allyson N. Ho, Dallas, Tex.; and Anthony A. Yang, Assistant to the Solicitor General, Department of Justice, Washington, D. C. (for United States, as amicus curiae.) For debtor respondents: C. Kevin Marshall, Washington, D. C. For claimant respondents: David C. Frederick, Washington, D. C.
  4. Mar 19 2024
    Letter from the Solicitor General filed.
  5. Feb 23 2024
    Reply of petitioner Truck Insurance Exchange filed. (Distributed)
  6. Feb 20 2024
    Motion for divided argument filed by respondents GRANTED. Justice Alito took no part in the consideration or decision of this motion.
  7. Feb 20 2024
    Motion of the Solicitor General for leave to participate in oral argument as amicus curiae and for divided argument GRANTED. Justice Alito took no part in the consideration or decision of this motion.
  8. Feb 14 2024
    CIRCULATED
  9. Feb 01 2024
    Record received from the United States Court of Appeals for the Fourth Circuit. The record is electronic and is available on PACER.
  10. Jan 31 2024
    Brief amicus curiae of United Policyholders filed.
  11. Jan 31 2024
    Brief amici curiae of Bankruptcy Experts filed.
  12. Jan 31 2024
    Brief amici curiae of Co-Chairs of The American Bankruptcy Institutes, et al. filed.
  13. Jan 31 2024
    Brief amicus curiae of American Association for Justice filed.
  14. Jan 31 2024
    Motion of the Solicitor General for leave to participate in oral argument as amicus curiae and for divided argument filed.
  15. Jan 30 2024
    Motion for divided argument filed by respondents.
  16. Jan 29 2024
    SET FOR ARGUMENT on Tuesday, March 19, 2024.
  17. Jan 29 2024
    Record requested from the United States Court of Appeals for the Fourth Circuit.
  18. Jan 24 2024
    Brief of Debtor-side respondents filed.
  19. Jan 24 2024
    Brief of respondents Official Committee of Asbestos Personal Injury Claimants, et al. filed.
  20. Jan 09 2024
    Motion to further extend the time to file respondents' brief on the merits granted and the time is extended to and including January 24, 2024.
  21. Jan 02 2024
    Motion for a further extension of time to file respondents' brief on the merits filed.
  22. Dec 14 2023
    Brief amici curiae of American Property Casualty Insurance Association, et al. filed.
  23. Dec 14 2023
    Brief amicus curiae of United States filed.
  24. Dec 13 2023
    Brief amici curiae of Anthony J. Casey, et al. filed.
  25. Dec 07 2023
    Brief of petitioner Truck Insurance Exchange filed.
  26. Dec 07 2023
    Joint appendix (volumes I and II) filed. (Statement of costs filed)
  27. Nov 20 2023
    Motion to extend the time to file the briefs on the merits granted. The time to file the joint appendix and petitioner's brief on the merits is extended to and including December 7, 2023. The time to file respondents' brief on the merits is extended to and including January 17, 2024.
  28. Nov 16 2023
    Motion for an extension of time to file the briefs on the merits filed by petitioner.
  29. Oct 13 2023
    Petition GRANTED. Justice Alito took no part in the consideration or decision of this petition.
  30. Oct 10 2023
    DISTRIBUTED for Conference of 10/13/2023.
  31. Sep 20 2023
    DISTRIBUTED for Conference of 10/6/2023.
  32. Sep 19 2023
    Reply of petitioner Truck Insurance Exchange filed. (Distributed)
  33. Sep 05 2023
    Brief of respondents Kaiser Gypsum Company, Inc., et al. in opposition filed.
  34. Sep 05 2023
    Brief of respondent Official Committee of Asbestos Personal Injury Claimants in opposition filed.
  35. Jul 19 2023
    Motion to extend the time to file a response is granted and the time is extended to and including September 5, 2023, for all respondents.
  36. Jul 18 2023
    Motion to extend the time to file a response from August 7, 2023 to September 5, 2023, submitted to The Clerk.
  37. Jul 07 2023
    Response Requested. (Due August 7, 2023)
  38. Jun 21 2023
    DISTRIBUTED for Conference of 9/26/2023.
  39. Jun 05 2023
    Brief amici curiae of Anthony J. Casey, et al. filed.
  40. May 03 2023
    Petition for a writ of certiorari filed. (Response due June 5, 2023)