NU Online News Service, June 25, 3:24 p.m.EDT

ASARCO, an Arizona-based copper company that declared bankruptcyin 2005, will have its day in court regarding the payment of legalexpenses if it prevails in its case against Fireman's FundInsurance Company, a Texas judge ruled.

Judge J. Manuel Ba?ales, of the 105th Judicial District Court ofNueces County, Corpus Christi, Texas, denied Fireman's motion forpartial summary judgment in the case involving a dispute overasbestos claims coverage

Fireman's argued that the language of the policy in question"unambiguously" gave it sole discretion to decide if it wished topay any legal expenses, according to Rhonda D. Orin, managingpartner in the Washington, D.C. office of Anderson Kill & Olickand lead insurance counsel to ASARCO.

As reported in a March, 13 NU Online article, theunderlying legal action involves a determination of insurancecoverage for past, present and future asbestos liabilities. InMarch, Judge Ba?ales ruled that an "asbestosis" exclusion in theFireman's policy does not bar coverage from other asbestos-relateddiseases.

Ms. Orin said in this latest decision, Judge Ba?ales did notgive a reason why he denied Fireman's motion for summary judgmentregarding payment of legal expenses, and under Texas law, shenoted, he is not obligated to give a reason.

Ms. Orin noted that Judge Ba?ales did not say Fireman's has topay the legal expenses, but rather that the policy language is notunambiguous. This means if Fireman's is found liable during trial,ASARCO will subsequently be able to argue for the payment of legalexpenses in court.

Ms. Orin said the cutoff in discovery proceedings for theupcoming trial is Feb. 1, 2010.

A spokesperson from Fireman's said, "While Fireman's Fund hadasked the court to grant its motion for partial summary judgmentlast week and to remove the issue of defense costs from the case atthis time, all that happened on Friday was that the judge left theissue of defense costs to be decided at trial. Fireman's Fund looksforward to presenting its position then."