2nd Cir.: Federal Court Should Weigh Validity of Crane Co. Defense in Navy Asbestos Case

NEW YORK — The 2nd Circuit U.S. Court of Appeals has reversed a ruling that returned a Navy asbestos case to New York state court, determining that the remand decision was based on an exaggerated reading of the federal contractor defense and the threshold for removal under the federal officer removal statute.

In its Nov. 13 order, the appeals court stated that in removing the case, defendant Crane Co. asserted “some competent evidence” of government control in support of its defense to allegations it failed to adequately warn of asbestos-related hazards in valves supplied to the U.S. Navy. Even where …