The U.S. Supreme Court's 2024 decision in Truck Insurance Exchange v. Kaiser Gypsum Co. was not the sea change moment insurers of bankrupt debtors advertised it to be. Rather, as we argued in a Law360 guest article last year, the standing requirements that litigants in all federal cases must satisfy before they may be heard — statutory, constitutional and prudential — remain unaltered.
In a Dec. 9 decision in the Chapter 11 case of the Roman Catholic Diocese of Syracuse, New York, U.S. Bankruptcy Judge Wendy Kinsella of the U.S. Bankruptcy Court for the Northern District of New York reached the same conclusion, holding that constitutional and prudential standing requirements were not preempted by the Supreme Court's Truck decision.
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