The lawsuit was filed last year by two insurance carriers seeking declaratory judgments regarding their obligations as excess insurers of a manufacturer of protective masks. The insured manufacturer had been subjected to a large number of toxic-exposure claims, alleging injuries relating to asbestos, silica, coal dust, perfluoronated chemicals, and benzene. The insurers venued their lawsuit in the Hennepin County District Court on the basis of residence. However, the defendant manufacturer moved for a change of venue to Ramsey County for the purposes of having the case heard by a group of judges specially assigned to oversee asbestos litigation. The trial court granted the motion, and the Minnesota Court of Appeals affirmed.
On appeal, the Supreme Court of Minnesota also affirmed the transfer. Taking up the issue de novo, the court discussed a series of asbestos-related orders of Minnesota’s chief justices, beginning in 1987, for the purposes of streamlining asbestos-related litigation. Rejecting the insurers’ argument that the asbestos orders are limited to suits for injuries and property damage, the court explained that the language of the asbestos orders is broad and expressly applies to lawsuits that “arise from or seek recovery for the manufacture, distribution, use, or exposure to asbestos.” The use of “arise from,” continued the court, indicates that lawsuits not directly seeking recovery for asbestos-related injuries may still be subject to transfer under the asbestos orders. Finally, the court explained that the coverage dispute was “likely to” involve issues that it had previously identified as appropriately heard by the asbestos judges, including “the connection between exposure to asbestos and disease” and “the manufacturer’s knowledge regarding the dangers of asbestos exposure.” On that basis, the court concluded that the insurance coverage claims “arise from the manufacture, use, or exposure to asbestos,” and that transfer to the asbestos docket was therefore proper.
For a complete copy of the court’s decision, please click here.
