Federal Appeals Court Upholds Expungement of Thousands of Asbestos Claims

NEW YORK - An order expunging nearly 24,000 maritime asbestos claims has been upheld by a federal appeals panel, which agreed that reckless handling of the claims ultimately led to their expiration under the statute of limitations. In Re: United States Lines, Inc., No. 01-5076 (2nd Cir.).

The Second Circuit Court of Appeals issued the decision Jan. 28, affirming an order entered March 2000 in federal court in New York. The asbestos claims were filed by merchant seamen who alleged exposure to asbestos on ships owned by United States Lines, which filed for bankruptcy in 1986.

Following the bankruptcy …