Fourth Circuit Affirms Denial of Stay Relief in Herlihy v. DBMP, LLC

On February 11, 2026, a split panel of the U.S. Court of Appeals for the Fourth Circuit affirmed the lower courts’ decisions that denied motions of asbestos claimants to lift the automatic stay in the bankruptcy case of DBMP, LLC (an affiliate of CertainTeed Corp.), so they could proceed with state-court litigation on their claims. The opinion provides guidance for companies facing mass tort exposure—particularly those utilizing a “Texas Two-Step” structure (i.e., a Texas divisional merger) to... By: Thompson Coburn LLP