STORY FROM: Reinsurance & Arbitration

Texas Federal Judge Refuses to Impose Sanctions on Resolute Management in Asbestos Coverage Action

DALLAS — A Texas federal judge has denied Celanese Corp.’s motion to impose sanctions on Resolute Management Corp. for filing a “frivolous” motion to dismiss in an action in which Resolute is accused of wrongly denying coverage for asbestos claims in order to limit the reinsurance liability of its parent company.

In a June 13 electronic order, Judge David C. Godbey of the U.S. District Court for the Northern District of Texas denied Celanese’s request for costs and fees incurred in responding to Resolute’s motion to dismiss and in bringing its motion for sanctions.

Celanese was named as a defendant ...

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