US Fidelity Can't Shake Suit Over Asbestos Defense Costs

Law360, New York (October 31, 2012, 4:27 PM EDT) -- A federal judge on Tuesday refused to dismiss a lawsuit against U.S. Fidelity and Guaranty Co. accusing it of concealing policies it issued to a company hammered by asbestos injury litigation in order to avoid paying its fair share of coverage.

The judge rejected the insurer’s argument that plaintiffs Associated Indemnity Corp. and Fireman’s Fund Insurance Co. failed to adequately state their claims that U.S. Fidelity breached its duty of good faith and fair dealing that came out of a 1997 oral contract to share defense...
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