Coltec, Garlock File Action Seeking Enforcement of Excess Coverage Policies

PHILADELPHIA -- Coltec Industries and Garlock Sealing Technologies have filed a lawsuit against Continental Insurance Co., alleging that the insurer has breached its coverage obligations under excess policies for defense and indemnity costs of asbestos claims asserted against the companies. Coltec Industries, et al. v. Continental Insurance Co., No. 04-05718 (E.D. Pa.).

The lawsuit, filed Dec. 9 in the U.S. District Court for the Eastern District of Pennsylvania, asserts that although Continental Insurance never signed an agreement governing the allocation of excess liabilities for underlying asbestos claims, the insurer led Coltec and Garlock to believe it would prove such coverage …