The Fourth Circuit’s recent unpublished opinion in Front Row Motorsports v. DiSeveria is, on the surface, a straightforward contract dispute arising from an indemnity agreement. But behind the curtain of corporate formalities is the long shadow of In re BK Racing, the bankruptcy case that has become the NASCAR equivalent of a Russian nesting doll—each layer revealing deeper dysfunction.
This long-running asbestos bankruptcy saga involving Kaiser Gypsum and its affiliate Hanson Permanente Cement returned to the Fourth Circuit following a Supreme Court remand, which held that Truck Insurance Exchange ("Truck") qualified as a “party in interest” under § 1109(b) of the Bankruptcy Code. This opened the door for Truck to assert objections to the proposed § 524(g) reorganization plan, which had previously been rebuffed for lack of standing.
