Service Fees Can Erode Aggregate Limits of Asbestos Defendants' Insurance Policy

PHILADELPHIA - Service fees paid by an asbestos defendant to process bodily injury claims can be applied to erode the aggregate limits of the company's excess insurance policies, a federal judge in Pennsylvania has ruled. Crown, Cork & Seal Co., Inc. v. Employers Insurance of Wausau, No. 99-4904 (E.D. Pa.).

In an opinion issued Oct. 17, Judge Jay C. Waldman of the U.S. District Court for the Eastern District of Pennsylvania awarded summary judgment to Employers Insurance of Wausau after finding that policies it issued to Crown Cork & Seal for defense costs associated with asbestos claims clearly indicated the …