Multi-Million Dollar Award To Construction Company -- MesoLink.org -- 01-04-06

A construction company that sued its own insurer for failure to defend it in asbestos litigation cases has been awarded over $50 million. The company claimed that its insurer, based in Boston, failed to defend it in a number of personal injury and wrongful death cases that related to exposure to asbestos. It is thought that the award made to API Inc. could be the biggest to date in the county.

An attorney for the construction company stated: "The big message is you cannot mistreat your policyholders who went out and bought that insurance for protection.'' No comment was made by officials from the insurance company, but some think that the company may appeal to try and get the verdict reduced.

The breakdown of the award made to the construction company included $10 million for operating in bad faith, $15 million for breach of duty, and over $27 million for breach of contract. The trail was in Ramsey County, and the insurance company involved was OneBeacon.

The construction company that won the award was involved in the installation and distribution of asbestos materials such as insulation. Over 700 lawsuits were filed against the company alleging personal injury and wrongful death stemming from asbestos exposure.