Spinoff of Insurer's Subsidiary Ended Its Fixed-Cost Asbestos Policies, Delaware Court Decides

WILMINGTON, Del. - The spinoff of Highlands Insurance Group Inc. from the Halliburton Co. resulted in the termination of certain fixed-cost insurance policies issued by the former subsidiary, thus relieving Highlands from providing coverage for certain asbestos claims, the Delaware Court of Chancery for New Castle County has ruled. Highlands Insurance Group Inc. v. Halliburton Co., et al., C.A. No. 17971 (Del. Ch. Ct., New Castle Cty.).

The court accordingly granted Highlands' motion for judgment on the pleadings and denied Halliburton's similar motion on March 21.

Highland Insurance Co., a property and casualty insurer, is a wholly owned subsidiary of …