SCOTUS Will Hear Appeal of Kaiser Gypsum Decision on “Insurance Neutrality”

“Insurance neutrality” is a common law bankruptcy standing doctrine that bars insurers from interjecting in chapter 11 plan proceedings. However, as James P. Bobotek and Andrew V. Alfano explain in “The ‘Insurance Neutrality’ Doctrine is Heading to SCOTUS,” in an appeal of the Fourth Circuit’s decision in Kaiser Gypsum, the Supreme Court will determine “[w]hether an insurer with financial responsibility for a bankruptcy claim is a ‘party in interest’ that may object to a Chapter 11 plan of reorganization.”