An "asbestosis" exclusion in a Fireman's Fund Insurance Company policy does not bar coverage from other asbestos-related diseases, according to an order issued by a Texas state court.

Judge Manual Ba?ales, of the 105th Judicial District Court of Nueces County, Texas, granted partial summary judgment to plaintiff ASARCO LLC, which sought a ruling that the Fireman's Fund exclusion applied only to claims arising specifically from asbestosis.

ASARCO is a Tucson, Ariz.-based copper company that declared bankruptcy in 2005. The legal action involves a determination of insurance coverage for past, present and future asbestos liabilities, according to Rhonda D. Orin, lead insurance counsel to ASARCO and a managing partner in the Washington, D.C. office of Anderson Kill & Olick.

The Fireman's Fund exclusion, as communicated by Ms. Orin, states, "It is hereby agreed that this policy does not apply to any claims arising out of asbestosis or silicosis."

Ms. Orin said Fireman's Fund had taken the position that "asbestosis" was a synonym for all asbestos related claims.

She said the next step will be to go forward with trial preparations. "We're going to wrap up discovery and focus on the scope of what they have to pay," Ms. Orin said.

Discovery cutoff is October, she noted.

A Fireman's Fund spokesperson said, "We do not comment on cases in litigation and are evaluating our options following this decision."

Special Reports /

Texas Judge Rules Policy Exclusion Covers Only Asbestosis

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