NEW YORK (CN) - Thousands of former workers of a bankrupt shipping line convinced the 2nd Circuit to reinstate a proposed plan that would require the company's insurer to pay them for their asbestos claims.
American Steamship Owners Mutual Protection and Indemnity Association argued that the proposed payment structure violates the pay-first provision of Prudential Lines' indemnity policy, which lets the insurer withhold indemnity payments until the claim has first been paid.
The court rejected all of the insurer's reasons why Prudential and its trustees are barred from making indemnity claims on any policies.
As many as 10,000 ex-employees said their jobs at Prudential exposed them to harmful asbestos that caused illness or injury.
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