{"id":232,"date":"2011-12-12T08:58:51","date_gmt":"2011-12-12T15:58:51","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=232"},"modified":"2011-12-12T08:58:51","modified_gmt":"2011-12-12T15:58:51","slug":"sixth-circuit-upholds-dismissal-of-125-million-insurance-claim","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/sixth-circuit-upholds-dismissal-of-125-million-insurance-claim\/","title":{"rendered":"Sixth Circuit Upholds Dismissal of $125 Million Insurance Claim"},"content":{"rendered":"<p>John F. Fisher &#8211; December 1, 2011<\/p>\n<p>On Monday, the Sixth Circuit affirmed the decision of the Northern District of Ohio in Bondex International, Inc. v. Hartford Accident and Indemnity Co.pdf, dismissing an insured\u2019s claims for $125 million in additional coverage for asbestos claims.\u00a0 Plaintiffs\/Appellants in the case, RPM Inc., Bondex International, Inc., and Republic Powdered Metals, Inc. (\u201cRPM\u201d) sought insurance coverage from multiple insurance company Defendants\/Appellees (\u201cInsurers\u201d) for RPM\u2019s settlement and defense costs related to thousands of asbestos-exposure products-liability lawsuits.\u00a0 Many of the lawsuits arose from consumers\u2019 alleged exposure to asbestos manufactured by the Reardon Company (\u201cOld Reardon\u201d), which sold its assets and liabilities to RPM and then dissolved in 1966.\u00a0 The Insurers had previously paid $100 million in insurance proceeds under the policies. \u00a0RPM sought an additional $125 million and several million dollars in ongoing defense costs, arguing that the policies\u2019 \u201cProducts Hazard\u201d caps did not apply to the Old Reardon claims.<\/p>\n<p>At trial, the Northern District ruled in favor of the Insurers, finding \u201cthat the de facto merger doctrine warranted extending the policies\u2019 Products Hazard caps to Old Reardon, as RPM\u2019s absorbed predecessor.\u201d\u00a0 The Sixth Circuit upheld the judgment, but based its ruling on the plain language of the policies and the parties\u2019 course of dealing.<\/p>\n<p>All of the policies provided coverage to the \u201cNamed Insured\u201d or \u201cInsured.\u201d\u00a0 The policies also included \u201cProducts Hazard caps,\u201d which limited potential product-liability claims during the policy periods.\u00a0 \u201cNamed Insured\u201d was defined to include \u201cany subsidiary company [and] any other company under their control and active management at the inception date of this policy.\u201d\u00a0 In addition, RPM previously entered settlement agreements with certain insurers acknowledging that The Reardon Company\u2019s claims would exhaust primary insurer\u2019s aggregate limits.<\/p>\n<p>Republic\/RPM had adopted Old Reardon\u2019s founding and date of incorporation on its own filings, and was making many of the same products, in the same facilities, with the same employees as Old Reardon.\u00a0 The Sixth Circuit held, \u201cAlthough Old Reardon lost its cloak of corporate independence after the 1966 purchase agreement and dissolution, the same \u2018association of persons for carrying on a commercial enterprise\u2019\u2014and thus, the same company under the plain meaning of that term\u2014continued as a division of Republic\/RPM.\u201d\u00a0 Because the relevant policies began in 1973, after the purchase of Old Reardon\u2019s assets, RPM were found to have controlled Old Reardon during the applicable period.\u00a0 This conclusion was supported by the fact that insurers had treated Old Reardon claims as being subject to liability caps for twenty years prior to the filing of this lawsuit without RPM challenging that determination.\u00a0 In addition, RPM had entered into the settlement agreements which treated Old Reardon claims as being subject to policy limits.<\/p>\n<p>via <a href=\"http:\/\/www.lexology.com\/library\/detail.aspx?g=f20cb1ef-5446-498a-8861-1c021b95bd4f&amp;utm_source=Lexology+Daily+Newsfeed&amp;utm_medium=HTML+email+-+Body+-+Federal+section&amp;utm_campaign=Lexology+subscriber+daily+feed&amp;utm_content=Lexology+Daily+Newsfeed+2011-12-08&amp;utm_term=\">Sixth Circuit upholds dismissal of $125 million insurance claim &#8211; Lexology<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>John F. Fisher &#8211; December 1, 2011 On Monday, the Sixth Circuit affirmed the decision of the Northern District of Ohio in Bondex International, Inc. v. Hartford Accident and Indemnity Co.pdf, dismissing an insured\u2019s claims for $125 million in additional coverage for asbestos claims.\u00a0 Plaintiffs\/Appellants in the case, RPM Inc., Bondex International, Inc., and Republic&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/sixth-circuit-upholds-dismissal-of-125-million-insurance-claim\/\">Continue reading <span class=\"screen-reader-text\">Sixth Circuit Upholds Dismissal of $125 Million Insurance Claim<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[3],"tags":[34,11],"class_list":["post-232","post","type-post","status-publish","format-standard","hentry","category-insurance-claims","tag-asbestos","tag-insurance-claim","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Sixth Circuit Upholds Dismissal of $125 Million Insurance Claim - Advise &amp; Consult, Inc.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/sixth-circuit-upholds-dismissal-of-125-million-insurance-claim\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sixth Circuit Upholds Dismissal of $125 Million Insurance Claim - Advise &amp; Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"John F. 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Fisher &#8211; December 1, 2011 On Monday, the Sixth Circuit affirmed the decision of the Northern District of Ohio in Bondex International, Inc. v. Hartford Accident and Indemnity Co.pdf, dismissing an insured\u2019s claims for $125 million in additional coverage for asbestos claims.\u00a0 Plaintiffs\/Appellants in the case, RPM Inc., Bondex International, Inc., and Republic&hellip; Continue reading Sixth Circuit Upholds Dismissal of $125 Million Insurance Claim","og_url":"https:\/\/www.myconstructionexpert.com\/blog\/sixth-circuit-upholds-dismissal-of-125-million-insurance-claim\/","og_site_name":"Advise &amp; Consult, Inc.","article_publisher":"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","article_published_time":"2011-12-12T15:58:51+00:00","author":"admin","twitter_card":"summary_large_image","twitter_creator":"@adviseconsult","twitter_site":"@adviseconsult","twitter_misc":{"Written by":"admin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.myconstructionexpert.com\/blog\/sixth-circuit-upholds-dismissal-of-125-million-insurance-claim\/#article","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/sixth-circuit-upholds-dismissal-of-125-million-insurance-claim\/"},"author":{"name":"admin","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7"},"headline":"Sixth Circuit Upholds Dismissal of $125 Million Insurance Claim","datePublished":"2011-12-12T15:58:51+00:00","mainEntityOfPage":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/sixth-circuit-upholds-dismissal-of-125-million-insurance-claim\/"},"wordCount":471,"commentCount":8,"publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"keywords":["asbestos","insurance claim"],"articleSection":["Insurance Claims"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.myconstructionexpert.com\/blog\/sixth-circuit-upholds-dismissal-of-125-million-insurance-claim\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.myconstructionexpert.com\/blog\/sixth-circuit-upholds-dismissal-of-125-million-insurance-claim\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/sixth-circuit-upholds-dismissal-of-125-million-insurance-claim\/","name":"Sixth Circuit Upholds Dismissal of $125 Million Insurance Claim - Advise &amp; 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