PG&E Claimants Say Insurer Releases Barred By 9th Circ.

Law360 (December 4, 2019, 2:21 PM EST) -- Tort claimants of Pacific Gas and Electric Co. are objecting to a proposed settlement in the company's Chapter 11 case in California bankruptcy court, saying provisions that would release claims between fire victims and their insurers violate Ninth Circuit precedent.

In a short brief filed Tuesday, the official committee of tort claimants argued that according to three Ninth Circuit decisions, bankruptcy courts do not have jurisdiction to approve an option in the settlement that would release all claims held by fire victims against their insurers, as it does not involve the debtors in the case.

The committee also objected to a...

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