Insurer's Suits over Previous Agreements to Be Heard Outside of Bankruptcy Court

NEW ORLEANS - A federal court in Louisiana has ruled that an insurance company's adversary proceedings in The Babcock & Wilcox Co.'s Chapter 11 reorganization may be heard by a jury outside of the bankruptcy court, granting the insurer's motion to withdraw the reference of the adversary proceedings from the bankruptcy court. Travelers Indemnity Co., et al. v. The Babcock & Wilcox Co., et al., No. 01-3387 (E.D. La.).

The U.S. District Court for the Eastern District of Louisiana concluded Jan. 23 that Travelers Indemnity Co.'s adversary proceedings seeking declaratory judgments to resolve questions concerning its obligations to indemnify Babcock …