The Travelers Indemnity Company, et al. v. Pearlie Bailey et al. (557 U.S. 137)

U.S. Supreme Court · decided June 18, 2009 · Supreme Court Database (Spaeth)

Citation
557 U.S. 137 · 129 S. Ct. 2195
Decided
June 18, 2009
Term
October Term 2008
Vote
7–2
Majority author
Justice Souter
Issue area
Economic Activity
Disposition
Reversed and remanded
Outcome
Petitioning party won
Ideological direction
Conservative

Opinion excerpt

Justice Souter delivered the opinion of the Court. As an element of the 1986 reorganization plan of the Johns-Manville Corporation (Manville), the United States Bankruptcy Court for the Southern District of New York enjoined certain lawsuits against Manville’s insurers, including The Travelers Indemnity Company and its affiliates (Travelers). The question is whether the injunction bars state-law actions against Travelers based on allegations either of its own wrongdoing while acting as Manville’s insurer or of its misuse of information obtained from Manville as its insurer. We hold that the terms of the injunction bar the actions and that the finality of the Bankruptcy Court’s orders following the conclusion of direct review generally stands in the way of challenging the enforceability of the injunction. I From the 1920s to the 1970s, Manville was, by most accounts, the largest supplier of raw asbestos and manufacturer of asbestos-containing products in the United States, In re Johns-Manville Corp., 517 F. 3d 52, 55-56 (CA2 2008), and for much of that time Travelers was Manville’s primary liability insurer. In re Johns-Manville Corp., No. 82 B 11656 etc. (Bkrtcy. Ct. SDNY 2004), App. to Pet. for Cert. in No. 08-295, pp. 111a-112a (hereinafter Bkrtcy. Ct. Op.). As studies began to link asbestos exposure to respiratory disease and thousands of lawsuits were filed against…

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