Suit Says Parmelee, Liberty Mutual Concealed Coverage Information

PHILADELPHIA - A Pennsylvania-based insurer has sued Parmelee Industries Inc. and another of the silica defendant's primary insurers for their alleged bad faith refusal to properly allocate defense costs and indemnity payments for silica-related claims. Penn-America Insurance Company v. Parmelee Industries, Inc., et al., No. 2:2004cv03581 (E.D. Pa.).

In a lawsuit filed July 28, Penn-America Insurance Company accuses Parmelee and insurer Liberty Mutual Insurance Co. of conspiring to withhold information about the amount of coverage available to pay silica claims under policies issued by Liberty. Penn-America also claims that Liberty designated itself as lead carrier among other insurers with policies …