Posted On: August 18, 2004, 6:46 pm CDT

Posted By: Matt

Amazing how many people are dumb enough to react to a story they don't even understand!

Everyone who has commented on this article does not even understand that the suit that was settled was a DIRECT ACTION SUIT against TRAVELERS by claimants that had ALREADY REACHED SETTLEMENTS PREVIOUSLY WITH JOHNS MANVILLE. The suits were filed directly against Travelers because the attorneys found that when document became a matter of public record that Travelers had discovered evidence that the defendant had known the harmful affects of asbestos and the lack of adequate precautions being taken when the claimants were exposed. The suit filed alleging Travelers settled the original claims in "BAD FAITH" and aided in settling the claims without bringing this information to the attention of the defense attorneys during discovery period for the original asbestos claims. The suit alleges that Travelers had an obligation to operate under good faith claim settlement practices (which by the way are laws intended to protect insureds in the settlement of property losses not claimants in third party losses) and had to advise of the public of this info. Therefore the Trial Lawyers took it upon themselves to attempt this new type of direct action against many insurers - not Travelers - probably without having any costs incurred to the original claimants. The claimant attorneys allege that if they had known this info the claimants would not have settled for the original amounts. These monies proposed in the settlement mentioned above are IN ADDITION to the money the claimants agreed to back when their original cases were settled in the late 70's and early 80's.

The reason the case was mediated and settled through the bankruptcy court is because the asbestos manufacturer had already filed for bankruptcy to get the class suit into a settlement proceeding in bankruptcy court (which if anyone missed reading the article the comapny was subsequently pruchased by none other thatn Warren Buffet's Berkshire Hathaway) - thereby sticking the asbestos obligations to the carriers and the bankruptcy court to settle. As part of the bankruptcy settlement proceedings a trust and a maximum settlement agreement was entered into which would bar future claims. How does the system allow companies to escape by filing bankruptcy and leaving insurance carriers and the public holding the bag while they still get to operate or sell the company to a Berkshire Hathaway. Also Travelers had to pony up additional moneys never intended in the original suit. Many other companies will be doing the very same thing soon - there are other carriers named in the very same suit for the Johns Manville claimants - so don't assume the claimants will only be getting less than the $800.

All you insurance carrier conspiracy theorists and Trial Lawyer abolitionists should get your facts straight before trying to comment like you understand something you have no clue about.