Petition to Compel Arbitration Stayed Pending Wisconsin Court Ruling in Asbestos Coverage Case

CHICAGO — An Illinois federal judge has stayed Allstate Insurance Co.’s petition to compel arbitration in an asbestos coverage case pending a Wisconsin state court’s determination on the effect of a settlement agreement between Allstate and A.O. Smith Corp. on another insurer’s contribution obligations.

On Oct. 24, Judge Thomas M. Durkin of the U.S. District Court for the Northern District of Illinois held that although the petition to compel arbitration is not premature, a stay will avoid the risk of piecemeal litigation.

A.O. Smith Corp., a manufacturer of asbestos-containing products, was insured under primary general liability, umbrella, and excess policies …