It has been reported that the Supreme Court has agreed that an insurance company can settle asbestos related lawsuits from a fund of five hundred million dollars, and in exchange for the settlement will not have to face any further lawsuits in connections with its relationship with John Manville Corp, which was once a major asbestos producer.
The insurance company, Travelers Companies, had been hit with lawsuits relating to claims that it tried to hide the dangerous effects and risks of exposure to asbestos. However, the company said that a fund had been set up by its former major client, John Manville Corp, for five hundred million dollars, and all settlements were to come out of this.
The settlement had been agreed by lower courts in 2004, when the insurance company settled with a group of plaintiffs, but this was overturned by the Court of Appeals, However, the Supreme Court has now overturned that decision.
A judge involved in the decision said: “So long as respondents or those in privity with them were parties to the Manville bankruptcy proceedings, and were given a fair chance to challenge the bankruptcy court’s subject matter jurisdiction, they cannot challenge it now by resisting enforcement of the 1986 orders.”