Asbestos settlements upheld.CHICAGO--(BUSINESS WIRE)--July 30, 1996--Last Friday, July 26, the Court of Appeals for the Fifth Circuit upheld two settlements in connection with a long-standing coverage dispute between Continental Casualty Co., the major CNA Financial CNA Financial Corporation (NYSE: CNA) is a financial corporation based in Chicago, Illinois, United States, and noted for its 600 foot tall red headquarters building there. Its principal subsidiary, Continental Casualty Company (CCC) was founded in 1897. Corp. property-casualty underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. company, and Fibreboard fibreboard Noun a building material made of compressed wood Noun 1. fibreboard - wallboard composed of wood chips or shavings bonded together with resin and compressed into rigid sheets fiberboard, particle board Corp., which manufactured insulation products containing asbestos asbestos, mineral asbestos, common name for any of a variety of silicate minerals within the amphibole and serpentine groups that are fibrous in structure and more or less resistant to acid and fire. between 1928 and 1971. The first settlement, known as the Global Settlement, resolves all personal injury asbestos claims neither filed nor settled prior to Aug. 27, 1993 ("Future Claims") against Fibreboard Corp. and releases Fibreboard, CNA (Certified NetWare Administrator) See Novell certification. and Pacific Indemnity Co. from all such claims. Pacific Indemnity is a subsidiary of Chubb Corp. The second settlement, known as the Trilateral Settlement, releases all claims by Fibreboard and Future Claimants against CNA and Chubb, even if the Global Settlement is not finally approved. The Trilateral Settlement does not, however, release Future Claims against Fibreboard. The Court split 2-1 in approving the Global Settlement but approved the Trilateral Settlement unanimously. The judgements remain subject to possible additional judicial review in the Fifth Circuit and the U.S. Supreme Court. The insurance coverage issues in litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. between Continental and Pacific on the one hand, and Fibreboard on the other, remain on appeal in the California state courts pending any final judgment in the federal court proceedings. CNA established reserves of approximately $2.0 billion in 1992 and 1993 for liabilities arising out of Fibreboard claims. CONTACT: CNA, Chicago Kevin C. Shyne, 312/822-7402 or David B. Thomson, 312/822-2084 |
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