Seaton, Stonewall Sue Clearwater for $535,365 Plus Future Sums

PROVIDENCE, R.I. - Seaton Insurance Co. and Stonewall Insurance Co. are suing Clearwater Insurance Co. for more than $535,365 in reinsurance proceeds, plus future not-yet-incurred sums, alleging that Clearwater is liable pursuant to facultative contracts issued in the 1970's by its predecessor. Seaton Insurance Co. v. Clearwater Insurance Co., No. 09-516 (D. R.I.)

The Oct. 26 complaint, filed in the U.S. District Court for the District of Rhode Island, asserts that Clearwater has failed to make timely payment of asbestos and pollution losses ceded by the insurers.

Seaton issued excess liability policies to Champion International Corp., Studebaker-Worthington Inc., Union Carbide …