Wisc. court rules insurer must pay full costs of asbestos lawsuits
The Wisconsin Supreme Court has ruled that an insurance company that represents a former manufacturer of asbestos-containing products must cover the cost of injuries related to exposure to those products. The court ruled that Liberty Mutual must cover the cost of injuries related to asbestos exposure involving products manufactured by Plastics Engineering Co.
The company—also known as Plenco—manufactured molding compounds that contained asbestos between 1950 and 1983. These compounds were commonly used in manufacturing during that period. Hundreds of individuals have filed asbestos lawsuits against Plenco, arguing that they developed mesothelioma or another asbestos-related disease after they were exposed to the company’s products.
Although Liberty Mutual had already paid $14.3 million in damages related to these asbestos claims by 2005, the company argued that it should not have to further costs by arguing that the cases should be considered “one occurrence,” since they were caused by a single mistake. The insurer also argued that it should not be forced to pay costs that happened while it was not Plenco’s insurer.
However, these arguments were rejected by the court, which ruled that Liberty Mutual must pay the full costs of all asbestos cases brought against Plenco.