Travelers Indem. Co. v. Bailey
(S. Ct. June 18, 2009)
The Supreme Court upheld a long-standing agreement among insurers, policyholders, and some claimants that allowed Travelers, an insurer of John-Manville Corp., to contribute insurance proceeds to a trust in exchange for immunity from future claims. The arrangement became a model for more than 40 other asbestos cases. Plaintiffs, however, sued Travelers, arguing that it broke consumer protection laws as well as common law by conspiring to hide the dangers of asbestos and failing to warn the public. The issue was whether the injunction barred state-law actions against Travelers based on allegations either of its own wrongdoing while acting as Manville’s insurer or of its misuse of information obtained from Manville as its insurer. The court held that the terms of the injunction barred the actions and that it was too late for plaintiffs to challenge the orders setting up the trust.
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By Carrie P. Appler
https://www.goldbergsegalla.com/attorneys/Appler.html