Oral Arguments on Insurers’ Rights during Bankruptcy Intrigue Experts
The potential for the U.S. Supreme Court to give insurers unrestricted rights to object to approved Chapter 11 bankruptcy reorganization plans has some legal experts concerned that doing so could result in future delays and force unreasonable settlements.
The justices’ questions during oral arguments last week in Truck Insurance Exchange v. Kaiser Gypsum left some legal experts believing the forthcoming ruling will establish the parameters for when an insurer can be heard during a bankruptcy proceeding.
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Chicago-based insurance recovery attorney Seth Lamden, a partner at Blank Rome LLP, said the tort system offers protection against fraudulent submissions by claimants.
“If a claimant is submitting a proof of claim they're doing so under penalty of perjury. So, there are safeguards in place to protect against that,” he said.
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"Oral Arguments on Insurers’ Rights during Bankruptcy Intrigue Experts," by Shane Dilworth was published in Business Insurance on March 26, 2024.