6th Circ. Nixes Federal-Mogul Asbestos Coverage Suit

Law360, New York (July 8, 2011, 5:32 PM EDT) -- The Sixth Circuit on Friday backed the dismissal of a Federal-Mogul Corp. trust's suit seeking defense coverage from Continental Insurance Co. for asbestos injury claims.

In a published decision, a three-judge panel agreed with Continental that its duty to defend under the policy had not been triggered because certain primary insurance policies were still providing coverage to the trust over the claims against a former division of the company, Vellumoid. Those active policies were issued by Globe Indemnity Co. and Liberty Mutual Insurance Co.

The automotive...
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