South Carolina Supreme Court Affirms the Power of State Court Receivers

DALLAS--(BUSINESS WIRE)--The South Carolina Supreme Court handed down a ruling that has major implications for asbestos litigation and insurance recovery.

“The ruling sends a clear message: companies cannot profit from doing business in the U.S. and then evade responsibility when they hurt Americans by refusing to obey court orders,” said Trey Branham, partner at Dean Omar Branham Shirley.

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The state’s high court affirmed sanctions against Canadian company Atlas Turner Inc., including a default judgment for refusing to provide court-ordered discovery in an attempt to shield liability in an asbestos-related death. The ruling also upheld the appointment of a receiver to pursue the company’s insurance assets.

“The ruling sends a clear message: companies cannot profit from doing business in the U.S. and then evade responsibility when they hurt Americans by refusing to obey court orders,” said Trey Branham, partner at Dean Omar Branham Shirley, who, along with Theile McVey of Kassell McVey, represented the family of Melvin Welch.

Mr. Welch died in 2023 of mesothelioma, an incurable cancer that affects the lining of the lungs and is only caused by exposure to asbestos. Atlas Turner, an active company in Canada, produced and sold asbestos insulation in South Carolina, where Mr. Welch was exposed.

“Companies like Atlas and its sister company, Asbestos Corporation Limited, have, for decades, thumbed their noses at U.S. court orders, after profiting from selling poisons in South Carolina and nearly every other state. We are grateful that the South Carolina Supreme Court understood this and is holding them to the rule of law,” Mr. Branham said.

The court’s opinion describes the company’s conduct as “willful” and “contemptuous,” citing its repeated refusal to comply with court-ordered discovery. Further, the court rejects the company’s argument that Canadian law prohibited compliance.

The ruling is expected to have broad consequences for future asbestos litigation, especially in cases involving defunct defendants, defendants that refuse to obey court orders and insurance assets that plaintiffs struggle to access.

“This case is about protecting the rights of Americans and making sure companies and insurers are held responsible for injuries they’ve caused, no matter where they are located,” Ms. McVey said.

Dean Omar Branham Shirley, LLP is a nationally recognized trial firm that handles cases across the country for individuals who have suffered catastrophic injuries or have died as a result of the irresponsible conduct of others. For more information, visit www.dobslegal.com.