Liberty Mutual Sues Penn-America over Coverage of Parmelee Silica Claims

KANSAS CITY, Mo. - Liberty Mutual Insurance Co. has sued its fellow insurers over defense costs Liberty paid Parmelee Industries, Inc. after its coverage obligations for certain silica claims filed against Parmelee had exhausted. Liberty Mutual Insurance Co. v. Penn-America Insurance Co., et al., No. 04-1123 (W.D. Mo.).

In a lawsuit filed in Missouri's Jackson County Circuit Court, Liberty accuses Penn-America Insurance Company and Great American Insurance Co. of breaching a long-standing coverage and cost-sharing agreement the insurers entered into to pay claims against Parmelee. The case has since been removed to the U.S. District Court for the Western …