Excess Insurers Must Pay Bankrupt Defendant's Pending, Future Claims

LOS ANGELES - In a decision expected to have broad implications in cases involving excess insurance coverage for claims against bankrupt asbestos defendants, a state court in California has ruled that such insurers can be held liable to pay the present and future asbestos claims of a bankrupt policyholder. Fuller-Austin Insulation Co. v. Fireman's Fund Insurance Co., et al., No. BC116835 (Calif. Super. Ct., Los Angeles Cty.).

The Los Angeles Superior Court ruled Feb. 26 that several of Fuller-Austin Insulation Co.'s excess insurers are obligated under to pay asbestos personal injury claims filed against Fuller-Austin, even after the company successfully …