Court Reverses Grant of New Trial, Affirms Defense Verdict for Electrical Product Manufacturer

Court of Appeal of California, First Appellate District, June 29, 2020

In Estes v. Eaton Corp., 2020 Cal. App. LEXIS 594, the Court of Appeal of California, First Appellate District reversed an order granting a new trial, and affirmed a defense verdict for Eaton Corporation. In this case, the jury heard the trial court case, and returned a defense verdict. However, the trial court granted the plaintiff a new trial on the ground of insufficient evidence. Eaton appealed the new trial order on multiple …

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New York Court Allows Allocation Based on General Date of First Exposure

In a 2018 decision, the court determined that “all sums” allocation and vertical exhaustion applied to the plaintiffs’ claims regarding coverage for amounts expended in the defense and resolution of lawsuits related to exposure to asbestos-containing products. The matter then proceeded to trial, where the parties presented evidence regarding dates of first exposure for underlying claims and expert opinion regarding allocation.

The court adopted the plaintiffs’ factual contentions and allocation methodology. Included in their allocation methodology was allocation of claims based on a general date …

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Illinois Court Holds Plaintiff Failed to Prove Coverage Allocation

John Crane, Inc. used asbestos fibers in the manufacture of gaskets, mechanical sealing, and packing products. It was named a defendant in over 325,000 cases involving personal injury claims based on asbestos exposure, and as a result became involved in a dispute with its insurers regarding coverage for such lawsuits. This decision was an appeal of a trial court judgment that (a) one of John Crane’s multi-year primary policies had annualized $20 million per occurrence limits, which resulted in a finding that the policy had …

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Ohio Appellate Court Applies “All Sums” and Vertical Exhaustion

William Powell Co. v. OneBeacon Ins. Co., 2020 Ohio App. LEXIS 2200 (Ohio Ct. At.. June 10, 2020)

The William Powell Company has been embroiled in a years-long dispute with its insurers regarding coverage for asbestos-related liabilities. In this decision, the court addressed whether the language of certain excess liability policies supported vertical exhaustion or horizontal exhaustion of coverage. Horizontal exhaustion means that all triggered primary policies must be exhausted before any excess policy can be triggered. Vertical exhaustion means that only the primary …

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Court Holds Law Firm May Be Alter-Ego of Defunct Company

In October 2018, a jury in a federal district court in North Carolina granted a judgment in excess of $30 million against Covil Corporation, a company that formerly manufactured products containing asbestos but has been defunct since 1993. By the time the North Carolina litigation commenced, Covil had no officers, directors, agents, or employees. As a result, the litigation was directed by Covil’s insurers. After the jury verdict was handed down, a receiver for Covil was appointed in South Carolina.

In an effort to collect …

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Mesothelioma

No Actionable Asbestos Exposure Attributed to Electrical and Contractor Defendants

U.S. District Court for the Middle District of North Carolina, May 21, 2020

Plaintiffs Larry and Anne Woolard filed the instant lawsuit against 14 separate defendants, alleging that exposure to their asbestos-containing products and equipment while Mr. Woolard worked as an HVAC apprentice, mechanic, and supervisor at Weyerhaeuser Paper Mill caused him to develop mesothelioma. After the close of discovery, four defendants filed for Summary Judgment: Fisher Controls International, LLC; Schneider Electric Systems, USA, Inc.; Chicago Bridge and Iron Company; and Chicago Bridge and Iron …

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Shipyard Owner’s Removal Deemed Timely Under Recent Fifth Circuit Decision

Plaintiff Robert Bourgeois II originally filed his lawsuit in the Civil District Court for the Parish of Orleans, State of Louisiana, alleging his exposure while employed at Avondale Shipyards caused him to develop mesothelioma. Defendant Avondale removed the case to the Eastern District of Louisiana; in response, the plaintiff filed the instant Motion for Remand.

The plaintiff asserted four arguments as to why remand is proper:

  1. Removal was untimely because Avondale learned of the case’s potentially removability when it received the transcript of Plaintiff’s May
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Second Circuit Reverses $59 Million Reinsurance Coverage Decision

Second Circuit, April 28, 2020

An insurer and its reinsurer were engaged in a long-running dispute over whether the reinsurer was obligated to reimburse the insurer for amounts paid in settlement to Goulds Pump, Inc. The settlement between the insurer and Goulds related to thousands of personal injury claims made against Goulds due to exposure to asbestos contained in Goulds’ products.

When the insurer settled its liability under primary and umbrella policies it had issued to Goulds, the parties agreed that the primary policies—which had …

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Ohio District Court Denies Insurer’s Motion for Summary Judgment on Pollution Exclusion, Contribution, and Bad Faith

U.S. District Court for the Northern District of Ohio, Eastern Division, April 24, 2020

R.W. Beckett Corporation was sued in a large number of cases alleging harm from exposure to asbestos in gaskets used in oil burners Beckett produced from 1960 to 1986. For 16 years, Beckett paid its own litigation costs, but it later discovered several insurance policies that covered the relevant time periods. The insurers who issued those policies began paying Beckett’s litigation costs, dividing the costs between them in an informal cost …

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Colorable Federal Officer Defense Leads to Denial of Remand in Shipyard Mesothelioma Case

United States District Court, Eastern District of Louisiana.

Plaintiff Jesse Hernandez filed suit against several defendants alleging he developed mesothelioma while working summers in 1968, 1969 and 1970 at the Avondale Shipyard as a painter’s helper and assistant clerk. During his deposition, he recalled working on board several vessels in the main yard and U.S. Navy destroyers. The defendants removed the case based on federal officer removal. Plaintiff moved to remand.

The Court quickly concluded that the defendants had a colorable federal defense. Relying on …

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