Hunton Insurance Recovery Blog

Because insurance law is a creature of state law, it is rare for the United States Supreme Court to wade into insurance matters. But as our colleagues explained last fall, the Supreme Court agreed to do just that when it granted certiorari in Truck Insurance v. Kaiser Gypsum, a Fourth Circuit bankruptcy case. On June 6, 2024, the Supreme Court issued an opinion unanimously reversing the Fourth Circuit. In doing so, the Court held that insurers with financial responsibility for bankruptcy claims are “parties in interest” under the United States Bankruptcy Code and, therefore, may appear and be heard, including to object to Chapter 11 reorganization plans. This decision clarifies an important issue and paves the way for potentially greater participation by insurers in the Chapter 11 process.