Insurer Fights Coverage For Crystal Factory Explosion

Law360, New York (July 13, 2011, 1:31 PM EDT) -- Nipponkoa Insurance Co. Ltd. sued NDK Crystal Inc. in Illinois federal court on Tuesday claiming that it didn't owe the synthetic quartz crystal manufacturer coverage for a fatal 2009 plant explosion.

Nipponkoa said in its complaint that the explosion of a “massive high pressure vessel” known as an autoclave at the Belvidere, Ill., synthetic crystal growing facility was caused by NDK's decision to continue operating that equipment despite warnings that it was susceptible to stress corrosion cracking and could suffer catastrophic failure.

“NDK made a business...
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