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Case Briefs

By ALM Staff | Law Journal Newsletters |
July 29, 2009

Extrinsic Evidence of Custom and Usage Properly Admitted to Assist in Interpreting 'Asbestosis Exclusion'

Recently, the U.S. Court of Appeals for the Third Circuit ruled on two significant issues that are likely to have important implications in future coverage cases in AstenJohnson, Inc. v. Columbia Casualty Co. et al., No. 07-2305 (3d Cir. Apr. 2, 2009). The dispute in AstenJohnson, which was tried in Pennsylvania federal court, arose out of primary and excess liability policies issued by Columbia Casualty Company and American Insurance Company to AstenJohnson's predecessor, a manufacturer of asbestos-containing dryer felts. After a non-jury trial, the trial judge found, in addition to ruling on other issues, that: 1) the asbestosis exclusion in Columbia's policy applied to all asbestos-related diseases, and 2) American had no obligation under its upper-level excess policies to defend AstenJohnson or to reimburse AstenJohnson for defense costs it may incur. AstenJohnson appealed.

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