CNA Not Required to Extend Policies Beyond Limits, Court Rules

Illinois Circuit Court of Cook County, Chancery Division

An Illinois court ruled that insurer CNA, Shook's client, was not required to increase its coverage limits for asbestos-litigation claims from York International and Flowserve Corp., successors of BorgWarner Inc. The litigation stretched more than a decade as the parties disputed the contractual terms of coverage in various umbrella policies.

CNA filed the lawsuit initially, seeking declarations limiting its legal responsibilities to cover asbestos claims against BorgWarner entities. The insurer paid out $94.33 million under the policies and sought to limit its liability for more payments. Shook attorneys persuaded the court that the umbrella policy limits had been met and that the additional $70 million sought by BorgWarner successors should not be added to the policies.

Cont'l Cas. Co. v. BorgWarner Inc., No. 04-CH-1708 (Ill. Cir. Ct., Cook Cnty., Ch. 2015).