Dana Corp. Has No Obligation to Indemnify Celotex Trust, 6th Circuit Affirms

CLEVELAND - A federal appeals court has upheld a ruling that Dana Corporation has no duty to indemnify the trust set up by bankrupt asbestos manufacturer Celotex Corporation for any asbestos-related losses and liabilities incurred by the companies' predecessor. Dana Corp. v. Celotex Asbestos Settlement Trust, Nos. 99-4493/99-4494 (6th Cir.).

The Sixth Circuit U.S. Court of Appeals said June 4 that the U.S. District Court for the Northern District of Ohio correctly enjoined the Celotex Asbestos Settlement Trust from representing that it had any right of indemnification against Dana, while making it a requirement for payment of valid claims that …