N.J. Court Dismisses Declaratory Action Filed by Asbestos Defendant Against Insurer; Grants Motion to Compel Arbitration

TRENTON, N.J. –– A New Jersey federal court has dismissed a declaratory action filed by an asbestos defendant against its insurer, finding that an earlier settlement agreement entered into by the parties mandated that disputes be handled through arbitration.

In the May 7 opinion, the U.S. District Court for the District of New Jersey rejected Flowserve Corp.’s stance that because U.S. Fire Insurance Co. failed to comply with certain requirements in the settlement agreement, the arbitration clause was not applicable.

Flowserve, formerly known as Durametallic Corp., initiated the action, contending that U.S. Fire issued the company certain policies of …