MOUNDSVILLE – Rain CII Carbon LLC is suing multiple insurance companies after it claims the insurers need to provide coverage in the wake of a company filing for bankruptcy.
On Oct. 22, 2009, 244 plaintiffs filed a complaint in Marshall Circuit Court against Ormet Corporation. Two more complaints were filed by additional plaintiffs on Sept. 6, 2011, one brought by 253 plaintiffs and the other was brought by 152 plaintiff. The three cases are collectively known as the Anderson cases, according to a complaint filed Dec. 18 in Marshall Circuit Court.
The three complaints generally stated various environmental tort allegations against the named defendants based on emissions from those defendants' facilities. Rain CII was named as a defendant in each of the Anderson cases.
Rain claims the Anderson cases relate to events occurring during the periods of coverage provided by the defendants in this case.
On Feb. 25, 2013, Ormet filed a voluntary petition in the U.S. Bankruptcy Court for the District of Delaware under Chapter 11 of the Bankruptcy Code and, as a result of Ormet's seeking protection through bankruptcy, Rain's efforts to seek contribution and/or indemnity from Ormet have been hampered, according to the suit.
Rain claims if Ormet cannot contribute to any judgment against Rain in the Anderson cases, the insurer defendants, as Ormet's liability, umbrella and excess insurers have an obligation to step into Ormet's shoes and indemnify Ormet for any losses for which it may be case in judgment of contribution in the Anderson cases.
Rain claims the insurers owe a duty to indemnify Ormet from any judgment rendered against Ormet in the Anderson cases.
The defendants policies provide coverage to Ormet for any legal liabilities incurred, or to be incurred in the future, in connection with the Anderson cases, according to the suit.
Rain is seeking judgment against the defendants declaring that all the defendants' policies issued to Ormet to provide coverage for the full legal liability of Ormet, incurred or to be incurred in the future, in connection with the Anderson cases. It is being represented by Landers P. Bonenberger of McDermott & Bonenberger PLLC.
The defendants in the case are American Home Assurance Co.; National Union Fire Insurance Co.; United States Fidelity & Guaranty Co.; Federal Insurance Co.; Greenwich Insurance Co.; Continental Insurance Co.; Continental Insurance Co. of New York; Hartford Insurance Co. of the Midwest; First State Insurance Co.; TIG Insurance Co.; St. Paul Surplus Lines Insurance Co.; Travelers Casualty & Surety Co.; Constitution State Insurance Co.; Allied World National Assurance Co.; Liberty Insurance Corp.; Insurance Co. of the State of Pennsylvania; Arrowpoint Investment Management Co.; Mutual Marine Office Inc.; Continental Casualty Co.; Zurich Insurance Co.; Employers Insurance Co. of Wausau; West Virginia Insurance Guaranty Association; and John Doe Insurers 1 through 60.
Marshall Circuit Court case number: 14-C-209