Case Notes

The U.S. Court of Appeals for the Fifth Circuit has reversed a Texas District Court's decision that held that asbestos contamination is not pollution; this decision affects the relationship of two insurance carriers to liability for defending and indemnifying a hardware manufacturer whose products contained and allegedly released asbestos. Longhorn Gasket and Supply Co. v. United States Fire Insurance Co., 2017 U.S. App. LEXIS 15706 (5th Cir. 8/18/17).

Longhorn Gasket and Supply Company (LGS) manufactured and sold gaskets — some containing asbestos — during the 1980s and 1990s. LGS has been sued in several lawsuits by claimants alleging exposure to asbestos dust from its products. During the relevant years of production, LGS maintained primary and excess insurance coverage with Trinity Lloyd's Insurance Company and Trinity Universal Insurance Company (Trinity) and United States Fire Insurance Company (U.S. Fire). In 2007, LGS sued U.S. Fire for breach of contract for that company's refusal to acknowledge the applicability of coverage under its policies; LGS also sought declaratory judgment that U.S. Fire was responsible for providing coverage to it. Trinity intervened in the suit, seeking contribution from U.S. Fire for coverage it must provide to LGS in the underlying claims.