Continental Asks High Court To Mull Arbitration In Thorpe Case

Law360, New York (May 4, 2012, 5:41 PM EDT) -- Continental Insurance Co. asked the U.S. Supreme Court last week to overturn a decision allowing bankruptcy courts broad discretion to veto arbitration agreements, such as one between the insurer and Thorpe Insulation Co. over asbestos claims.

The insurer lodged a petition April 30 challenging a precedential Ninth Circuit decision in January finding that a bankruptcy court, in the interest of centralizing a debtor’s core disputes, may ignore a pre-petition arbitration agreement between a creditor and debtor. The decision widened a circuit split over the interpretation of...
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