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Published on 7/23/2014 in the Prospect News Distressed Debt Daily.

Garlock co-defendant Ford appeals amendments to evidence access order

By Kali Hays

New York, July 23 – Garlock Sealing Technologies, LLC’s co-defendant Ford Motor Co. and other movants are seeking an appeal of amendments to a May order that have prevented Ford from accessing sealed evidence and testimony from Garlock’s asbestos claims estimation trial that concluded earlier this year, according to a July 23 notice with the U.S. Bankruptcy Court for the Western District of North Carolina.

Additional movants filing the appeal include Volkswagen Group of America, Inc., Honeywell International Inc., Resolute Management, Inc., AIU Insurance Co., American Home Insurance Co., Birmingham Fire Insurance Co. of Pennsylvania, Granite State Insurance Co., Lexington Insurance Co., Mt. McKinley Insurance Co., Everest Reinsurance Co. and National Union Fire Insurance Co. of Pittsburgh, Pa.

As previously reported, Ford’s efforts to access to the sealed documents began in March after Garlock's estimation court found "widespread and demonstrable misconduct by asbestos claimants or their attorneys" during litigation to enhance recovery from the company.

The court granted Ford access to the sealed documents on May 6, allowing the company to investigate if it had been “defrauded” along with Garlock.

Garlock’s official committee of asbestos personal injury claimants obtained recognition of a proposed amendment prohibiting Ford and any authorized parties from transferring any documents to any parties not authorized to view them on July 9.

The court entered another amendment to the May access order on July 11, further preventing Ford’s access to the documents until a period allowing additional appeals has passed.

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


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