Liquidator Properly Denied $35 Million in Contingent Claims, N.J. Appeals Court Rules

TRENTON, N.J. - A New Jersey appeals court has affirmed that the liquidator of Integrity Insurance Co. properly exercised his discretion in denying recovery to third-party claimants who asserted $35 million in contingent claims arising from alleged asbestos-related injuries. In the Matter of the Liquidation of Integrity Insurance Co., No. A-4769-10T1 (N.J. Super., App. Div.).

The Superior Court of New Jersey, Appellate Division, found that the claims were not covered by the Integrity excess policy and that New Jersey law gives the liquidator the discretion to disallow contingent claims.

Prior to its insolvency, Integrity was authorized to write property and …