Beasley, Allen, Crow, Methvin, Portis & Miles, P.C.

According to an Associated Press report, on Friday the U.S. Supreme Court said it is reviewing consolidated cases against the Travelers Companies Inc., to reinstate a $500 million settlement and block any new lawsuits against Travelers. The original settlement was established in 1986 in relation to a group of asbestos claims against Johns-Manville Corp., which was once a leading asbestos producer. Travelers provided insurance policies for Johns-Manville.

According to the original settlement, a federal bankruptcy court established a trust fund to cover claims against the asbestos manufacturer. Then, in 2002, new claims were filed against Johns-Manville, and the 2nd U.S. Circuit Court of Appeals allowed the claims to go forward.

Travelers is appealing to the Supreme Court on the basis that the new lawsuits should be barred by the 1986 settlement.

According to a report by the Dow Jones Newswires, published on Morningstar, in its appeal Travelers said, “The Second Circuit’s decision undermines important principles of judicial finality.”

The AP report says the appeals court overturned the settlement based on the notion that a bankruptcy judge does not have the authority to act in such a broad manner.

The Supreme Court will hear arguments in March.

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