Court Denies Insurers’ Bid for Default Judgment Against Insolvent Silica Defendant

HATTIESBURG, Miss. — A federal judge has denied a request for default judgment by insurance firms seeking to avoid liability for a silica verdict against their insured, ruling that the underlying plaintiff has standing to defend the insured’s coverage interest.

U.S. District Judge Keith Starrett ruled Nov. 14 that it would be inequitable to foreclose the only likely means of recovery for silica plaintiff Gwendolyn Reeves, given Mississippi Valley Silica Company Inc.’s “unwillingness or inability” to defend itself in the coverage action.

Travelers Casualty and Surety Co. and affiliate St. Paul Fire and Marine Insurance Co. moved for a default …