Court Declines to Apply Efficient Proximate Cause to Negligent Disturbance of Asbestos in Construction

U.S. District Court for the Western District of Washington, December 14, 2021

An insurance coverage dispute arose out of an action by Northshore School District against Beresford for a construction project in which Beresford allegedly improperly and negligently disturbed asbestos-containing materials requiring extensive remediation, cleaning, and repairs.

Beresford tendered its defense to Travelers, which denied there was any defense and indemnity coverage based upon asbestos exclusions but agreed to provide a defense under a full reservation of rights. Travelers subsequently conceded that Northshore potentially made …

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Executive Officers Considered Employees for Co-Employee Exclusions

Louisiana Court of Appeals, First Circuit, April 9, 2021

The plaintiffs brought suit on behalf of deceased against a number of manufacturers and suppliers of asbestos containing products allegedly causing asbestos-related lung cancer. The plaintiffs amended to add Arrowood Indemnity, successor of an insurer which issued a policy to Stone & Webster which was in effect from January 1, 1965 to June 2, 1971.

Arrowood moved for summary judgment asserting that the CGL policies contained employee exclusions which precluded coverage to Stone & Webster for …

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Federal Court Declines to Enjoin Receiver from Pursing Coverage Claims and Defenses in Receivership Court

U.S. District Court for the District of South Carolina, March 1, 2021

The issues before the court arise from an insurance coverage action in which the parties disputed the rights and obligation of Covil under a policy allegedly issued to it and whether injuries in underlying asbestos actions are within the products and completed operations hazard of the policies, as well as the proper method for allocating injury across multiple policy years.

The action was initially filed in state court by the appointed receiver for …

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Court Declines to Find Coverage in World War II Era Asbestos Claim

U.S. District Court for the Southern District of New York, January 22, 2021

This case is an insurance coverage dispute between plaintiff Cosmopolitan Shipping Co., Inc. and defendant Continental Insurance Company regarding claims made against Cosmopolitan by seamen exposed to asbestos on its ships in the 1940s. The policy at issue was unable to be located, apart from three endorsements. An evidentiary hearing was conducted to determine whether the policy provided coverage and what the terms of coverage were.

In September 2017, Cosmopolitan settled 47 …

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Insured’s Liability for Defense Costs Not Appropriate for Interlocutory Appeal

U.S. District Court for the Southern District of New York, November 16, 2020

This case follows an opinion and order by the same court regarding resolution of the parties’ cross-motions for summary judgment. The opinion and order affixed liability on Danaher and Atlas Copco for costs incurred by Travelers in defending certain asbestos and silica related bodily injury claims. Danaher and Atlas Copco moved for leave to file an interlocutory appeal, and North River (NR) moved for partial reconsideration, leave to file an interlocutory appeal, …

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