Judge Rules Against GM in Asbestos Case

February 20, 2007 - An Oakland County circuit judge has ruled against General Motors Corporations in a multimillion-dollar lawsuit over asbestos claims and who’s responsible for them.

According to an article in the Oakland Press, GM’s lawsuit against Royal & SunAlliance USA of Charlotte, N.C. resulted in victory for the insurance company.  A spokesperson for Royal & SunAlliance said the company feels “vindicated.”

"The court's decision to dismiss the complaint confirms R&SA USA's long-held resolve that GM's case was completely without foundation and that the claims presented to R&SA were under policies that had long since expired," the insurance company said in a statement issued after the decision.

"We have always been confident that GM's suit was without merit and should never have been brought before the court," said R&SA USA President and CEO John Tighe. "Today's ruling validates our position, and we are pleased that the case has been dismissed."
Many of General Motors' claims for its asbestos and environmental liabilities date back as far as 30-45 years, said Kedar Bryan, insurance company spokesman.

In its court documents, R&SA alleges that GM had forwarded to it more than 70,000 asbestos and environmental claims for partial payment. Claims from other litigation involving asbestos have averaged anywhere from $10,000 to more than $200,000.

"GM mounted a legal and public relations campaign beginning in 2005 to seek to have R&SA USA cover these claims despite having disclosed for decades to the federal government and others that it had no such coverage," Tighe said.

"This dispute concerns events which took place more than 30 years ago. Witnesses have died, memories have faded and documents have been destroyed in the ordinary course of business, frustrating Royal's ability to defend itself," Judge John McDonald noted in a statement to the court.  “"GM was not diligent in pursuing its asbestos and environmental claims,” he added.