Judge Rebukes Liberty Mutual’s Attempt to Prorate Mesothelioma Settlement
The impact of a mesothelioma diagnosis goes far beyond the medical implications, and often goes beyond the victim’s eventual death from the rare and fatal form of cancer. The loss of income due to disability, cumulative medical expenses, burial costs, and other damages suffered frequently leads to litigation against those responsible, or to negotiated settlements. In some cases, even agreements become the subject of litigation. In a recent case, the court system quickly upheld the agreed-to terms and protected the rights of victims and their survivors.
New Jersey Manufacturer Agreed to Mesothelioma Settlement
The case was filed by a group of people who had been exposed to asbestos through the negligence of a New Jersey manufacturer called Jenkin Brothers. The company had negotiated a settlement with them following their diagnoses with mesothelioma and other asbestos-related diseases, and later filed for bankruptcy. When payment was due the victims found that the bankrupt company’s insurer, Liberty Mutual, was unwilling to pay the negotiated amount due to a lapse that had occurred in the insurer’s coverage of the company.
The nine asbestos victims were informed by Liberty Mutual’s claims manager, Resolute Management, that because the manufacturer had paused their policy, they only were obligated to pay a pro-rated amount of the settlement. In response the victims sued for what they were owed, arguing that Liberty Mutual had become a “party-in-interest” when their client ceased to exist and maintaining that the agreement to insure Jenkins against asbestos claims had been provided with full knowledge of the risks faced by the company, and had been offset by the payment of large premiums.
Verdict Favors Mesothelioma Victims
Upon review of the case, Justice Arthur Engoron of the New York state court system agreed that the insurer was responsible for Jenkins Brothers financial obligations “in all relevant and meaningful ways” and ordered the company to pay the mesothelioma victims the full negotiated amount. He pointed out that it was “entirely wrong” to have even attempted to evade the full amount owed.
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