CHICAGO (CN) – After a natural gas explosion, two of three excess insurers of Rockwell Automation Inc. are not responsible for post-judgment interest, the 7th Circuit ruled.
Rockwell was found 30 percent liable for a natural gas explosion at Kansas City Power & Light. Rockwell was ordered to pay $97.6 million.
National Union Insurance paid Rockwell $18 million to cover post-judgment interest and then sued the other two insurance companies to recover the money.
Judge Manion found that National Union chose and paid for the appellate attorney, so it assumed the defense of the case.
“It is unreasonable to read the (policy) terms as including post-judgment interest because there is a section specifically articulating then the insurer will pay post-judgment interest, i.e., when it assumes Rockwell’s defense.” Manion ruled.
The other insurers, Federal and Travelers, did not assume the defense, so National Insurance must bear the $18 million cost alone.