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Published on 4/11/2014 in the Prospect News Distressed Debt Daily.

Garlock asbestos committee denied strike request on access to evidence

By Kali Hays

New York, April 11 - Garlock Sealing Technologies Inc.'s committee of asbestos personal injury claimants were denied their request that a court strike the motion of Legal Newsline seeking access to sealed evidence from Garlock's asbestos injury estimation hearing, according to a Friday order with the U.S. Bankruptcy Court for the Western District of North Carolina.

The court also denied the unsealing motions made by Legal Newsline and Ford Motor Co. without considering the merits of the requests.

The court reasoned that "there is nothing of significance to be gained by further argument on the unsealing motions in this court; and the most expeditious route to resolution of the issues is to have all of these matters presented to the District Court when it considers the present appeal," according to the order.

The appeal before the District Court was made by Legal Newsline regarding its initial request that the court allow it access to the sealed evidence from the estimation hearing.

The court said the "appeal appears to be on track to a timely resolution."

As previously reported, the court in the Garlock estimation case claimed discovery of widespread misconduct among the asbestos claimants and their legal counsel, but portions of the evidence used to reach this conclusion remain under seal as the result of a preliminary order during the proceedings.

As a result of the court's discovery, access to the sealed evidence in the Garlock estimation case has been requested by Aetna, Inc., Rawlings Co., LLC, Ford Motor Co., Specialty Products Holding Corp. and Legal Newsline, with only Aetna being granted access thus far.

Garlock is a subsidiary of Charlotte, N.C.-based EnPro Industries, which makes sealing products, bearings, compressors and engines. Garlock filed for bankruptcy on June 5, 2010 under Chapter 11 case number 10-31607.


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