Mich. Court Orders Excess Insurer to Reimburse Stryker for Settlement of Knee Implant Claims

GRAND RAPIDS, Mich. –– A Michigan federal court has ordered an excess insurer to reimburse Stryker for settlements it reached in cases involving its Duracon Unicompartmental Knee implant, finding that the manufacturer was not required to get consent from TIG Insurance Co. before finalizing the settlements since they occurred during another company’s layer of insurance.

In the Oct. 30 opinion, the U.S. District Court for the Western District of Michigan noted that the circumstances of the case were unique, but, ultimately, the risk of unanticipated developments were better placed on TIG.

In 1998, Stryker purchased the stock and assets …