Illinois Judge Denies Insurer's Motion to Dismiss Asbestos Coverage Action

CHICAGO - The U.S. District Court for the Northern District of Illinois on August 25 denied an insurer's motion to dismiss a lawsuit demanding coverage for over 2,000 asbestos personal injury claims. Coltec Industries Inc. v. Zurich American Insurance Co., No. 99-C3192 (N.D. Ill.).

Judge Ronald Guzman dismissed Zurich American Insurance's argument that Coltec Industries' complaint failed to state an issue of controversy or that it contained no factual allegations supporting the company's claim for anticipatory breach of contract.

Judge Guzman ruled that Zurich's failure to provide an unreserved defense created a concrete and sufficient case for Coltec's breach …