'All Sums,' Pa. Law Applies to Coverage Dispute Between Asbestos Defendant, Insurer

ST. LOUIS - The 'all sums' allocation analysis under Pennsylvania law applies to claims filed by an asbestos product manufacturer against its insolvent excess insurer, a state supreme court has ruled. Viacom, Inc., as Successor in Interest to Westinghouse Electric Corporation v. Transit Casualty Company, No. SC85986 (Mo. Sup. Ct.).

The decision, issued July 1 by the Missouri Supreme Court, reversed a recent ruling that found manufacturer Westinghouse Electric Corp. should collect nothing on its policies because Missouri law applied, allowing the insurer to allocate the claims on a pro-rata, time-on-the-risk basis.

Westinghouse bought three excess insurance policies from Transit …