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Case Briefs

By ALM Staff | Law Journal Newsletters |
January 24, 2005

Coverage for Latent Injury Claims Conveys to Successor Corporation

With the issuance of its decision in Glidden Co. v. Lumbermens Mutual Casualty Co., No. 81782 (Ohio Ct. App. Dec. 17, 2004), the Ohio Court of Appeals for the Eighth District became the latest court to address the question of whether insurance coverage for latent injury claims follows the liability for such claims when the original insured sells the operations that gave rise to the injury. The court held that “a corporation which succeeds to liability for pre-acquisition operations of another entity acquires rights of coverage by operation of law. This theory applies even where the acquisition was a purchase of assets or only part of a predecessor corporation.”

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