Insurers Cut Silica Payments to Build Asbestos Fund, Suit Says

BEAUMONT, Texas - A sand supplier alleges in a complaint filed in Texas that it has information indicating that its insurers have engaged in the 'unconscionable' practice of withholding settlement payments and cutting attorneys' fees in silica cases so they can accumulate reserves for federal asbestos claims. Specialty Sand Co. v. CNA Financial Corp., et al., No. 06-465 (E.D. Texas).

The allegations come as part of a lawsuit Specialty Sand Corp. filed against its insurers, CNA Financial Corporation and Continental Casualty Corp., who Specialty Sand says have refused to reimburse it for defense and indemnification costs related to four Texas …