Battle Over Coverage for Asbestos Claims Remanded to State Court

CHICAGO - An Illinois federal judge has remanded to state court a battle between Allstate Insurance Co. and Transatlantic Reinsurance Co. over whether underlying asbestos claims were misallocated and are excluded from reinsurance coverage. Allstate Insurance Co. v. Transatlantic Reinsurance Co., No. 1:08-cv-04173 (N.D. Ill.).

On Nov. 19, Judge Robert Dow of the U.S. District Court for the Northern District of Illinois ruled that Allstate's joinder of Aon Corp. as a non-diverse defendant warrants remand. Allstate filed its first amended complaint in the Cook County Circuit Court on the same day.

Transatlantic reinsured an excess umbrella liability policy issued by …