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Published on 7/9/2014 in the Prospect News Distressed Debt Daily.

Garlock asbestos committee wins privacy amendment to Ford access order

By Kali Hays

New York, July 9 – Garlock Sealing Technologies LLC’s official committee of asbestos personal injury claimants obtained recognition of a proposed amendment to a May 6 order granting Ford Motor Co. access to sealed evidence and testimony from Garlock’s asbestos claims estimation trial concluded earlier this year, according to an amended July 9 order with the U.S. Bankruptcy Court for the Western District of North Carolina.

As a result of the amendment, Ford and any other party permitted to access the trial information are prohibited from transferring any documents to other persons that are not authorized to view them.

In addition, documents that contain more than four digits of any person’s social security number are to be immediately redacted and any attorney retention agreement documents are not to be viewed or investigated, according to the amended order.

As previously reported, the committee sought the amendment to “correct a clear error of law and to prevent manifest injustice,” the motion said.

Ford sought access to the sealed documents in light of Garlock's estimation court finding "widespread and demonstrable misconduct by asbestos claimants or their attorneys" during litigation to enhance recovery from the company, according to a memorandum supporting Ford's request.

Ford has been a co-defendant with Garlock in numerous asbestos-related cases and said that "this problem is pervasive and substantial enough to warrant further inquiry," as it may have been "defrauded in some of the same cases," according to a motion.

Aetna, Inc., a possible insurer to some Garlock asbestos claimants, was granted access on a similar request March 28.

Garlock is a subsidiary of Charlotte, N.C.-based EnPro Industries, which makes sealing products, bearings, compressors and engines. Garlock filed for bankruptcy on June 5, 2010, and its Chapter 11 case number is 10-31607.


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