Quigley gets court OK of asbestos claim insurance dispute settlement

By Jennifer Lanning Drey

Portland, Ore., July 14 - Quigley Co., Inc. received 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 an attorney.

The approval came Tuesday from the U.S. Bankruptcy Court for the Southern District of New York.

According to the motion requesting approval of the settlement, 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 had arisen regarding how the policies could respond to asbestos-related personal injury claims under a 1998 coverage dispute settlement.

Under the 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.

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

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