COURT FINDS OWENS-CORNING'S FINANCIAL CONDITION 'PRECARIOUS'
WAYNE, Pa., Oct. 1 /PRNewswire/ -- Ruling in an asbestos personal- injury lawsuit, the Delaware Supreme Court has found that defendant Owens-Corning Fiberglas Corp.'s financial condition is "precarious," Mealey's Litigation Report: Asbestos reported today. The state's highest court recently rejected the company's motion for an emergency stay of execution pending appeal of a $2.5 million judgment for the estate of a cancer victim. The Supreme Court affirmed a ruling by the Delaware Superior Court, New Castle County, that rejected Owens-Corning's request to post a bond for the amount of the judgment, instead ordering the company to pay the amount of the judgment into a trust account of the court. The Superior Court judge found that a bond would not adequately secure the judgment for several reasons: the company's product liability insurance for asbestos claims will soon be exhausted; a leveraged buyout has left the company with a "substantial debt"; a reserve set aside for asbestos claims is "merely a balance sheet entry as potential liability"; and the filing of limited fund class actions by former asbestos-product manufacturers, if successful, could render state court judgments unenforceable. The Delaware Supreme Court said the lower court's conclusion "on the precarious nature of Owens-Corning's financial condition, is supported by the record and is the product of a logically deductive reasoning process." "Owens-Corning Fiberglas may be able to use the court's findings regarding the `precarious' nature of its financial condition in its ongoing battle against punitive damages," said Scott Jacobs, editor of Mealey's Litigation Report: Asbestos. Mealey's Litigation Report: Asbestos is published twice-monthly by Mealey Publication of Wayne, Pa. For a free copy of this week's report, contact Mealey's at 215-688-6566. Mealey Publications also publishes litigation reports on the following areas: Americans With Disabilities Act; Asbestos Property Actions; Bad Faith; Breast Implants; D&O Liability; Insurance; Insurance Insolvency; Intellectual Property; International Arbitration; Lead; Premises Liability; Punitive Damages & Tort Reform; Reinsurance; Superfund and Toxic Torts. /delval/ -0- 10/1/93 /CONTACT: Scott Jacobs, assistant managing editor, of Mealey Publications, 215-688-6566/
CO: Mealey Publications, Inc.; Owens-Corning Fiberglas Corp. ST: Pennsylvania IN: PUB SU:
MJ-CC -- PH002 -- 7991 10/01/93 17:50 EDT
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|Date:||Oct 1, 1993|
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