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Published on 5/19/2014 in the Prospect News Distressed Debt Daily.

Garlock asbestos committee asks court to reconsider Ford access order

By Kali Hays

New York, May 19 - Garlock Sealing Technologies LLC's official committee of asbestos personal injury claimants asked the court to reconsider and amend its May 6 order granting Ford Motor Co. access to sealed evidence and testimony from Garlock's asbestos claims estimation trial held earlier this year, according to a May 16 motion with the U.S. Bankruptcy Court for the Western District of North Carolina.

Specifically, the committee is asking that the court amend its order so as to prohibit Ford and other parties permitted to access to the trial information from transferring any documents to other persons.

"Granting the motion would correct a clear error of law and prevent manifest injustice," the motion stated.

As previously reported, the committee won its request to stay the order granting Ford access to the documents May 7, pending resolution of any appeal, including that of the committee.

Ford sought access to the sealed documents in light of Garlock's estimation court finding "widespread and demonstrable misconduct by asbestos claimants or their attorneys" during litigation to enhance recovery from the company, according to a memorandum supporting Ford's request.

Ford has been a co-defendant with Garlock in numerous asbestos-related cases and said that "this problem is pervasive and substantial enough to warrant further inquiry," as it may have been "defrauded in some of the same cases," according to a motion.

Aetna, Inc., a possible insurer to some Garlock asbestos claimants, was granted access on a similar request March 28.

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, and its Chapter 11 case number is 10-31607.


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