Courts weigh insurance coverage for asbestos and PFAS liabilities in US cases
Short record: the main facts, with sources. A full case file has not been prepared.
In a 1995 Second Circuit case, juries found National Gypsum did not expect or intend its asbestos injuries, and the known-loss defence was rejected except for claims filed before the policy was bought. In 2021 a federal court held that Wolverine World Wide's legacy insurers had a duty to defend it over PFAS discharges from its Rockford, Michigan tannery.
- Wolverine World Wide — Duty-to-defend ruling in 2021; $8.3 million recovered from legacy policies in fiscal 2020 SEC EDGAR
- Legacy insurers (American Insurance Co., Travelers units and others) — Held to have a duty to defend in 2021; confidential settlements with one insurer in June 2024 and with Travelers in August 2024
- National Gypsum asbestos claimants — The asbestos injuries underlying the claims
What happened
In Stonewall Insurance v. Asbestos Claims Management Corp., decided by the Second Circuit in 1995, juries found that National Gypsum did not subjectively expect or intend the asbestos injuries.
The known-loss defence was rejected except for claims already filed or demanded before the policy was bought.
In December 2018 Wolverine World Wide sued its legacy insurers, including American Insurance Co. and Travelers units, over PFAS discharges from its Rockford, Michigan tannery.
In 2021 the Western District of Michigan held that the insurers had a duty to defend, because the allegations left open whether the discharges were sudden or accidental.
In court and with insurers
Lawsuits and rulings
- 1995Defendant wonStonewall Ins. v. Asbestos Claims Mgmt. Corp.United States Court of Appeals, Second Circuit · Civil · Stonewall Insurance → Asbestos Claims Management Corp.
Juries found National Gypsum did not expect or intend the asbestos injuries; the known-loss defence was rejected except for claims filed or demanded before the policy was bought.
- 2018-12–2021SettledWolverine World Wide legacy insurance suit (filed December 2018)United States District Court, Western District of Michigan · Civil · Wolverine World Wide → American Insurance Co., Travelers units and others
The court held the insurers had a duty to defend; confidential settlements followed in June 2024 (one insurer) and August 2024 (Travelers).
Insurers
What we don't know
Nature
- Not measured Harm to nature: The record holds no measurement of harm to nature.
Record
- Insufficient Reported but not verified: a $69.5 million figure appears in some sources and is described as Wolverine's own 2020 settlement with the state and townships, not an insurer payment.
- None on record The identity of the insurer in the June 2024 settlement is not stated.
- None on record The full text of the 2021 ruling was not reviewed.
- None on record The party roles in the 1995 Stonewall case are taken from the case name; the full caption was not reviewed.
Did the harm stop?
Not stated in the sources reviewed.
Who paid?
Not stated in the sources reviewed.
Sources
Company or project
- Wolverine World Wide annual report (Form 10-K), fiscal 2020SEC EDGAR · 2021
Connected cases
- Wolverine World Wide PFAS, Rockford (Michigan) United States · 2018–2024
- Wolverine World Wide (Company) — here: company that sued its legacy insurers over PFAS discharges at its Rockford tannery; there: Insured; claimant in the coverage suit
- American Insurance Co. (Insurer) — here: legacy insurer sued by Wolverine; there: Legacy insurer
- Travelers (Insurer) — here: legacy insurer (Travelers units) sued by Wolverine; settled in August 2024; there: Legacy insurer (units named as defendants)