STORY FROM: Reinsurance & Arbitration

Ill. Federal Judge Refuses to Reconsider Stay of Petition to Compel Arbitration in Asbestos Coverage Case

CHICAGO — An Illinois federal judge has refused to reconsider his stay of Allstate Insurance Co.’s petition to compel arbitration in an asbestos coverage case pending a Wisconsin state court’s determination of the effect of an asbestos settlement agreement on another insurer’s contribution obligations.

In a Dec. 11 order, Judge Thomas M. Durkin of the U.S. District Court for the Northern District of Illinois reiterated that although the petition to compel arbitration is not premature, a stay will avoid the risk of piecemeal litigation.

A.O. Smith Corp., a manufacturer of asbestos-containing products, was insured under primary general liability, umbrella, and ...

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