Court Finds Insurer May Not Interject Itself Into Plan Negotiations by Invoking Duty to Cooperate

In “Court of Appeals Finds That Insurers May Not Participate in Bankruptcy Negotiations by Invoking an Insured’s Duty to Cooperate,” colleagues James P. Bobotek and Andrew V. Alfano examined a recent ruling by the Fourth Circuit that found, among other things, that an insurer was not a “party in interest” and lacked standing to object to a plan because, by leaving the insurer’s rights and obligations under the policy intact, the plan was “insurance neutral.”