3rd Circuit: U.S. Gypsum, Quigley Can Bring Action Against G-I Holdings for Breach of CCR Deal

PHILADELPHIA –– The U.S. Court of Appeals for the 3rd Circuit has reversed a lower court’s ruling barring asbestos defendants from bringing breach of contract claims against a bankrupt co-defendant.

In its June 17 opinion, the 3rd Circuit opined that since U.S. Gypsum Co. and Quigley Company Inc. ended up covering G-I Holdings Inc.’s nonpayment of resolved asbestos personal injury claims, they were damaged and, subsequently, accrued a cause of action.

In the opinion, the 3rd Circuit did not comment as to whether G-I Holdings breached the underlying agreement, whether the asbestos defendants could show damages or whether G-I …