Silica Trust Sues Liberty Mutual, Other Insurers for Policy Proceeds

CHICAGO - A bankruptcy trust established in the wake of a silica defendant's Chapter 11 filing has sued several insurers, seeking a declaration that the insurance companies are obligated to pay into the trust all proceeds under policies they issued to the company prior to its bankruptcy filing. The Plibrico Silica Trust v. Liberty Mutual Insurance Co., et al., No. 06-1521 (N.D. Ill.).

The declaratory judgment action was filed March 17 in the U.S. District Court for the Northern District of Illinois and urges the court to find that the companies must cover all sums incurred for past and future …