Assignment of insurance policies in bankruptcy
Asbestos defendants who file for reorganization under the U.S. Bankruptcy Code and seek to establish a personal injury trust for the payment of claims may transfer their liability insurance recovery rights to the trust even if the insurance policies include provisions barring the transfer of such rights, the U.S. Court of Appeals for the Third Circuit has ruled in a precedential opinion. The court held, in In re Federal-Mogul Global, that the plain language of a U.S. bankruptcy law statute, 11 U.S.C. 1123(a)(5)(b), permits the transfer of estate property to the trust "notwithstanding any otherwise applicable nonbankruptcy law" and pre-empts any anti-assignment provision within the individual insurance policies.
Comments (3)
Read through and enter the discussion by using the form at the endPosted by My Industrial Injury Claims.com - May 15, 2012 6:09 AM
I rarely comment, however i did some searching and wound up here
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George - May 22, 2012 2:16 PM
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Gene Killian - May 31, 2012 3:03 PM
@Industrial Injury Claims: First, thank you for the very nice comments. On the "brain dead" point, I don't mind reading whatever people want to say, as long as it's not obscene. :) I'm just glad they took the time to write. You can keep up with me on this site; on Twitter at @genethelawyer; and at our website, http://www.tkfpc.com. On the website, you have to join to read the articles (don't ask), and I tend to write mostly about developing trends in employment law there.
@George: Thanks so much for your comments. I do all the writing myself, but the blog is powered by (and designed by) the LexBlog folks out of Seattle. They do great work, I agree.