X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Coverage litigation in the case of Congoleum Corp. v. ACE American Ins. Co., Dkt. No. MID-L-8908-01 (N.J. Super. Ct. May 18, 2007), provides a cautionary tale for insureds tempted to attempt a strategy to foist financial responsibility for asbestos or other mass tort liabilities upon their insurers.

Congoleum, a manufacturer of flooring products that once contained encapsulated asbestos, made a business decision to enter into a global agreement with asbestos plaintiffs’ counsel that essentially had Congoleum paying very little money of its own, but generated thousands of asbestos claims, many of them more than dubious, against Congoleum. The global settlement was part of Congoleum’s larger plan to use �524(g) of the Bankruptcy Code and a so-called prepackaged bankruptcy or “pre-pack” to rid itself of current and future asbestos liabilities.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.