Air & Liquid Systems Corp. v. Allianz Underwriters Ins. Co. (W.D. Pa. February 24, 2011)
Air & Liquid Systems Corp. was covered by several excess policies between 1981 and 1984 that obligated insurers to pay defense and indemnity costs relating to lawsuits filed by plaintiffs who sued for asbestos-related injuries allegedly resulting from asbestos-containing component parts in the company’s centrifugal pumps, heat-exchange coils and air handling systems used in the construction, power generation and defense industries. Eighteen insurers, including Federal Insurance Co., Allianz Underwriters Insurance Co. and Lloyd’s of London, have disputed coverage of the claims.
On February 24, 2011, Air & Liquid Systems Corp. and its parent, Ampco-Pittsburgh Corp., filed a lawsuit in the United States District Court for the Western District of Pennsylvania seeking a declaratory judgment that the insurers must defend and indemnify for the claims. Plaintiffs also seek a declaration that Howden North America Inc., which acquired certain Ampco-Pittsburgh Corp. assets in 1993, has no right to coverage under the excess policies. Plaintiffs allege that the claims for indemnity and defense that Howden North America Inc. submitted adversely affect plaintiffs’ right to the same recovery.
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Toni Frain and John Kuller