N.Y. Federal Judge Denies Clearwater Summary Judgment on Defense Costs Issue

ALBANY, N.Y. — A New York federal judge has refused to award partial summary judgment to Clearwater Insurance Co. in a reinsurance dispute, ruling that questions of fact exist as to whether it is obligated to reimburse Utica Mutual Insurance Co. for asbestos-related defense costs.

In a July 25 order, Judge Gary L. Sharpe of the U.S. District Court for the Northern District of New York explained that it is unclear whether Utica was liable for such defense costs under policies it issued to Goulds Pumps Inc.

Between 1978 and 1982, Utica issued four one-year umbrella liability policies to Goulds …