Topic: Asbestos

UK: Supreme Court Decides on Legality of Scottish Pleural Plaques Legislation

The Supreme Court has published its decision in the case of AXA General Insurance Limited and others v The Lord Advocate and Others [2011] UKSC 46 in which AXA and other insurers (the Insurers) appealed against the decision of the Inner House of the Court of Session regarding the legality of the Damages (Asbestos-Related Conditions) (Scotland) Act 2009 (the 2009 Act) (please see our previous blog here for further information on that decision). 

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California Court Requires Complete Horizontal Exhaustion of Liability Coverage Before Excess Coverage Can Attach

Addressing apportionment issues left unresolved by the California Supreme Court’s decision in Montrose Chemical Corporation v. Admiral Insurance Company, 10 Cal.4th 645 (1995), California’s intermediate appeals court has ruled that an insured that manufactured asbestos-containing products must first exhaust the limits of all of its primary insurance before it may claim benefits under its excess coverage. 

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ARC Congress, London, 23 February 2011

EAPD is sponsoring today’s ARC Congress in London. EAPD partner, Mark Everiss, who is a Director of ARC, has just chaired an interesting discussion on UK Asbestos/EL Trigger Issues/ ELTO by a prestigious panel of experts – EAPD partner Richard Hopley, Professor Duncan Geddes of Royal Brompton Hospital, Ian Willett of MMI, Colin Wynter QC of Devereux Chambers and Helen Hatchek of RSA. 

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Reinsurer’s Abstention Motion Denied: Later-Filed Federal Court Action is Held to be Proper Forum for Multi-Contract Reinsurance Dispute

Defendant, Clearwater Insurance Company, f/k/a Skandia America Reinsurance Corporation (“Clearwater”), filed suit against Seaton Insurance Company and Stonewall Insurance Company (“Plaintiffs”) in Connecticut Superior Court, arguing that there was no coverage under certain reinsurance agreements for Plaintiffs’ asbestos claims.  Plaintiffs subsequently commenced a declaratory judgment action in Rhode Island federal court concerning the parties’ respective rights and obligations under the same reinsurance agreements, as well as eleven other contracts. 

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New York State Court Rules that Reinsurers Must Follow Cedent’s Settlement and Loss Allocation

In a recent decision of the New York Supreme Court, United States Fid. & Guar. Co. v. American Re-insurance Co., Index No. 604517/02 (N.Y. Sup. Ct. Aug. 20, 2010), the court granted summary judgment to a ceding company against the defendant reinsurers on causes of action for breach of contract and breach of the implied covenant of good faith and fair dealing arising out of the cedent’s $987.4 million payment to settle certain asbestos injury claims. 

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New York State Court Denies Motion to Compel Discovery of Reinsurance and Reserve Information

In Mt. McKinley Ins. Co. v. Corning Inc., 2010 NY Slip Op 20235 (N.Y. Sup. Ct. June 14, 2010), an insured (“Corning”) moved to compel discovery of reinsurance and reserve information from its insurers, arguing that this information was relevant, material and necessary to its coverage claim.  Specifically, Corning alleged that the reinsurance information sought could be relevant to the insurers’ liability for the asbestos claims at issue (including whether the insurers took inconsistent coverage positions with their reinsurers) and to rebut the insurers’ claims of late notice. 

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U.S. Lawsuits Based Upon Foreign Toxic Tort Liability: A Growing Threat?

In July 2009 in New Castle County in the State of Delaware, three separate plaintiffs filed civil suits against E. I. Du Pont De Nemours and Company, Inc. (“DuPont”) alleging that their work at a DuPont textile plant in Mercedes, Argentina from 1961 to 2002 caused them to be exposed to and inhale asbestos fibers. 

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