Steve Hoke is quoted in an article about the growing trend of plaintiffs’ counsel advocating for the appointment of Receivers to revive formerly dissolved companies in order to collect their unexhausted historical liability insurance. Read the article here.  If you are unable to access the article, excerpts from the article are provided below.   

“SC Justices To Weigh Jurisdictional Limits In Asbestos Cases”

Law360, February 6, 2025, Ganesh Setty

Law360 (February 6, 2025) — “The South Carolina Supreme Court will consider Tuesday whether its first female justice and former chief, who now oversees the state’s asbestos cases, can continue to exercise jurisdiction over companies not incorporated in the state or haven’t directly done business there, and nevertheless appoint a receiver over their insurance assets.

Since 2017, Justice Jean H. Toal appointed the same receiver for at least 20 entities, Peter Protopapas of personal injury firm Rikard & Protopapas LLC, to control the insurance assets of not just active foreign companies, but also companies, either incorporated in the Palmetto State or not, that have dissolved. Some of these companies in turn argue that Justice Toal exceeded her jurisdictional authority to do so.   .   .  

What’s at Stake

Stephen Hoke of Hoke LLC, an insurance recovery attorney experienced in legacy liability corporate reorganization matters— including the formal dissolution and revival of companies — told Law360 that there’s nothing particularly unique about South Carolina law allowing a judge to appoint a receiver over a dissolved company that’d been incorporated in the state.

In corporation-friendly Delaware, for example, the state’s supreme court ruled in the 2013 case In Re Krafft-Murphy Co. Inc. that Delaware law permitted the appointment of a receiver over Krafft-Murphy, a Delaware company, more than 10 years after it formally dissolved and “where the dissolved corporation’s only assets are liability insurance policies.”

Insurers often defend and cover injury claims against a dissolved policyholder company without the need for a receiver, Hoke further noted, saying that within their respective economic interests, insurers find it “the lesser of evils.”

But where Hoke said he thought Justice Toal may have gone astray is appointing the receiver, Protopapas, to control the insurance assets of active foreign companies or dissolved companies that were never incorporated in South Carolina, or may not have substantially done business in the state.

“This is an issue that is bound to command increasing attention in the future,” he added. “How these issues will be resolved is unclear, especially if more than one state expresses an interest in reviving a particular dissolved company.”

If you wish to learn more about the article or have any questions, please contact Steve Hoke at shoke@hokellc.com or (312) 575-8576. You can also view his bio here.