Silica Defendants May Collect From LIGA, Louisiana High Court Rules

BATON ROUGE, La. - Louisiana's highest court has ruled that solvent insurers are not obligated to "fill the gap" left by an insolvent carrier if the exposure dates fall outside of the coverage period. Southern Silica of Louisiana v. Louisiana Insurance Guaranty Association, No. 07-CA-1680, La. Sup.).

The Louisiana Supreme Court ruled on April 8 that the Louisiana Insurance Guaranty Association (LIGA) must provide defense and indemnity for hundreds of silicosis claims brought against Southern Silica of Louisiana Inc. and Mid State Sand and Gravel Co. (Southern Silica, collectively).

Southern Silica alleged that they were hit with approximately 500 lawsuits …