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By Matthew Impelli
Life & Trends Reporter
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U.S. Supreme Court Justice Samuel Alito sat out of a unanimous decision this week in a case involving insurance claims and bankruptcy.
On Thursday, the U.S. Supreme Court issued a ruling in Truck Insurance Exchange v. Kaiser Gypsum Co., Inc., et al., which focused on bankruptcy claims amid asbestos-related lawsuits.
The court reached a unanimous decision (8-0) in the case, but Alito sat out of hearing the arguments.
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"JUSTICE ALITO took no part in the consideration or decision of this case," the Supreme Court said in the opinion.
Alito did not provide a reason for his decision to sit out of the case. He has faced criticism recently over reports that an upside-down American flag was seen flying outside his home in 2021.
Amanda Frost, a law professor at the University of Virginia, told the New York Times last month that the upside-down flag is the "equivalent of putting a 'Stop the Steal' sign in your yard."
In a statement to the New York Times, Alito said: "I had no involvement whatsoever in the flying of the flag. It was briefly placed by Mrs. Alito in response to a neighbor's use of objectionable and personally insulting language on yard signs."
Alito also said that the flag was placed in part of a "very nasty neighborhood dispute."
Newsweek reached out to the U.S. Supreme Court via email for comment.
The Supreme Court ruled on Thursday that insurers with financial responsibility for bankruptcy claims are considered "parties in interest" under Chapter 11 bankruptcy proceedings. This decision allows Truck Insurance Exchange to object to the reorganization plan of Kaiser Gypsum Co., which faced numerous asbestos-related lawsuits and filed for Chapter 11 bankruptcy.
Truck Insurance Exchange served as the primary insurer for Kaiser Gypsum Co., and faced potential exposure to fraudulent claims due to the reorganization plan's lack of disclosure requirements for uninsured claims. The case has been remanded for further proceedings consistent with the Supreme Court's opinion, affirming insurers' rights to participate fully in Chapter 11 bankruptcy cases in which they have significant financial exposure.
Last month, Justices Sonia Sotomayor, Elena Kagan and Ketanji Brown Jackson sat out of a decision in Brunson v. Sotomayor, et al. Each of the three liberal justices was named as a defendant in the case. They did not provide a specific reason for sitting out and are not required to do so.
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