Quigley, Pfizer settle asbestos claim insurance coverage dispute

By Caroline Salls

Pittsburgh, June 23 - Quigley Co., Inc. requested court approval of a settlement with parent Pfizer Inc., OneBeacon Insurance Co. and National Indemnity Co. that resolves a dispute surrounding a 1998 insurance coverage settlement, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

According to the motion, Pfizer bought liability policies that cover Pfizer and Quigley for asbestos-related claims. The shared policies have $6.02 million of remaining products limits.

Pfizer also bought policies for periods before Oct. 1, 1967. Quigley is not covered under those policies.

Quigley said a dispute has arisen regarding how the policies can respond to asbestos-related personal injury claims under a 1998 coverage dispute settlement.

Under Tuesday's settlement, OneBeacon will pay $6.02 million to Quigley's asbestos personal injury trust on account of the shared policies no later than the seventh anniversary of the plan of reorganization effective date.

National Indemnity will guarantee OneBeacon's settlement payment.

OneBeacon will also pay $10.5 million to Pfizer in three installments over the next five years to settle disputes surrounding the Pfizer-only policies.

In addition, OneBeacon has agreed not to object to confirmation of Quigley's plan.

A hearing is scheduled for July 14.

Quigley, a unit of Pfizer Inc., filed for bankruptcy on Sept. 3, 2004. Its Chapter 11 case number is 04-15739.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.