Court Finds Error In Denial of Congoleum's Application for Special Retention Counsel

PHILADELPHIA - The 3rd Circuit Court of Appeals reversed a district court's order on Oct. 13, finding that a bankruptcy judge erred in denying Congoleum Corp.'s application for special retention counsel. In Re: Congoleum Corp. et al., No. 04-3609 (3rd Cir. Ct. App.); Century Indemnity Co., et al. v. Congoleum Corp., et al. No. 04-cv-01709 (D. N.J.).

Congoleum was facing nearly 100,000 alleged asbestos injury claims, which would exhaust its primary liability coverage. The company filed a declaratory judgment in the Superior Court of New Jersey in 2001 (Congoleum Corp. v. Ace American Insurance Co., et al. No. MID-L 8908-01, …