Minn. Court Stays Action Filed by Asbestos Settlement Trust Against Insurer

MINNEAPOLIS -- A Minnesota federal court has stayed a lawsuit involving an asbestos trust, citing the insurer defendant's ongoing liquidation proceedings in a New York federal court. API Inc. Asbestos Settlement Trust v. Atlantic Mutual Insurance Co., No. 09-665 (D. Minn.).

In the Nov. 2 decision, the U.S. District Court for the District of Minnesota said that if the API Inc. Asbestos Settlement Trust finds that the Liquidator is not considering its claims as part of the liquidation proceedings, it can petition the court to lift the stay.

In the underlying action, filed by API Inc. Asbestos Settlement Trust against …