Illinois Union Appeals Disqualification of Crowell & Moring

PROVIDENCE, R.I. - In a $3.1 million battle over reinsurance coverage for underlying asbestos claims, Illinois Union Insurance Co. is challenging a Rhode Island federal magistrate's disqualification of the law firm of Crowell & Moring as its counsel. Seaton Insurance Co. v. Illinois Union Insurance Co., No. CA 07-332 (D. R.I.).

In June, Magistrate Judge David L. Martin of the U.S. District Court for the District of Rhode Island ruled that the firm's representation of Illinois Union creates a conflict of interest. The magistrate judge rejected Ilinois Union's evidence of an oral agreement to waive the conflict at issue.

In …