Trust Funds Lose Discovery Round In Asbestos Saga

Law360, New York (February 23, 2011, 8:43 PM EST) -- A Delaware bankruptcy judge said Tuesday she did not have jurisdiction to resolve discovery disputes in ongoing asbestos litigation involving Hartford Accident Indemnity Co. and other insurers of bankrupt manufacturers.

Judge Judith K. Fitzgerald of the U.S. Bankruptcy Court for the District of Delaware dismissed five adversary proceedings brought by several asbestos trust funds, saying the claims were not connected to the bankruptcies and belonged in federal district court.

The trust funds, created through the restructurings of several bankrupt companies and designed to benefit asbestos claimants,...
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