Reinsurers Denied Summary Judgment in Asbestos Coverage Battle

NEW YORK - The follow the fortunes doctrine precludes dismissal of a lawsuit in which United States Fidelity & Guaranty Co. is seeking reimbursement from reinsurers for a $975 million settlement of asbestos claims brought against Western MacArthur Co., a New York judge has ruled. United States Fidelity & Guaranty Co., et al., v. American Re-Insurance Co., et al., No. 604517/02 (N.Y. Cty. Sup. Ct.).

Judge Richard B. Lowe III of the New York County Supreme Court denied summary judgment motions brought by American Re-Insurance Co. and Excess Casualty Reinsurance Association, ruling that the doctrine bars the reinsurers from challenging …