BorgWarner Should Cover PCB Claims, Kuhlman Contends

Law360, New York (April 11, 2012, 5:35 PM EDT) -- Kuhlman Electric Corp. asked a Mississippi federal judge on Tuesday to force BorgWarner Inc. to indemnify the company against environmental claims over its release of polychlorinated biphenyls, saying BorgWarner was obligated under a merger agreement.

Automotive parts supplier BorgWarner acquired Kuhlman in 1999 and agreed in the merger agreement to cover Kuhlman against certain environmental claims, including the thousands of toxic tort suits underlying this case, as BorgWarner has admitted in court documents, according to Kuhlman.

BorgWarner holds Travelers Indemnity Co. to be responsible for covering...
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