Fifth Circuit Decision Stops Transfer of Garlock Suits to Bankruptcy Court

NEW ORLEANS - Being a co-defendant in a case with a bankrupt asbestos defendant and having a potential contribution claim against the debtor does not create a sufficient basis to have cases filed against the defendant transferred to and resolved by the court where the Chapter 11 proceedings are underway, a federal appeals court has ruled. Arnold v. Garlock, Inc., No. 01-41327 - 01-41335 (5th Cir.)

Denying defendant Garlock Inc.'s motion to stay remand of cases the company had previously removed to federal court, the Fifth Circuit U.S. Court of Appeals ruled Dec. 28 that Garlock does not have a …