NU Online News Service, March 2, 3:51 p.m. EST
A federal judge has reversed a Federal Bankruptcy Court decision against Travelers and has thrown out an order for the insurer to pay $500 million in asbestos claims.
Judge John G. Koeltl, sitting in U.S. District Court in the Southern District of New York in Manhattan, ruled on Wednesday that the insurer does not have to make the payment because the conditions of prior agreements were not satisfied and “it was an error to require Travelers to make the settlement payments.”
The judge notes that the appeal “is the latest chapter in a long-running litigation involving Johns-Manville Corporation, Travelers and asbestos claimants.”
According to court documents, Travelers originally agreed to pay $80 million into a fund in 2004 to settle its insurance obligations in the asbestos-litigation case. However, plaintiffs pursued Travelers for additional monies, and the carrier was willing to pay the $500 million to finally settle the outstanding litigation.
However, Koeltl says the company did not receive such relief, and cited that as part of the grounds for reversing the Bankruptcy court's decision.
The judge ordered that the case be closed and any open motions also be closed.
The case is Travelers Indemnity Co. vs. Statutory and Hawaii Direct Action Settlement 11-1312 and 11-1329.
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