Judge Finds No Insurance Coverage for Congoleum's Global Settlement

NEW BRUNSWICK, N.J. - A New Jersey judge has absolved insurers of liability for asbestos-related claims negotiated by Congoleum Corp. as part of a global settlement and prepackaged bankruptcy, finding that the agreements were not made in good faith and the insurers' opposition was well-founded. Congoleum Corp. v. ACE American Insurance Co., et al., No. MID-L-8908-01 (N.J. Super. Ct., Middlesex Cty.).

On May 18, Middlesex County Superior Court Judge Nicholas J. Stroumtsos Jr. said that Congoleum excluded its insurers from participating in negotiations leading to a global resolution of the company's asbestos liabilities and that the settlement agreement, among other …