Chemical Co. Appeals Dismissal of Bad Faith Claim in Benzene Coverage Action

CINCINNATI — A chemical company is appealing an Ohio federal judge’s award of summary judgment to two insurers on its bad faith claim in a coverage dispute involving a $4.25 million benzene exposure settlement and a captive reinsurer.

Chemical Solvents Inc. is challenging a March 22 order in which Judge Solomon Oliver Jr. of the U.S. District Court for the Northern District of Ohio ruled that the claim is barred by the ruling in Marginian v. Allstate Ins. Co., 481 N.E.2d 600 (Ohio 1985), because the defendant insurers settled the underlying action within policy limits.

Chemical Solvents filed its notice …