This article originally ran in Law360 Insurance Authority on November 3, 2023. All rights reserved. A subscription is required.
Policyholder side attorney John G. Koch, a shareholder at Flaster Greenberg PC, told Law360 he was surprised the Supreme Court agreed to take up the case since the Fourth Circuit "wrote a great opinion and reached the correct result."
While he does not think the high court needed to take up the case, he said it likely did so to address the issue of standing in the context of a bankruptcy.
"Perhaps the Supreme Court wants to clarify the regular bankruptcy standing issue regarding creditors, as opposed to the very specific issue of whether this bankruptcy plan was insurance neutral and the scope of the relevant policy's cooperation clause, which is, after all, an issue of state law, not federal law." he said.