Travelers Indem. Co. v. U.S. Silica Co.

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U.S. Silica Company has been named as a defendant in numerous silica claims seeking damages for injuries allegedly caused by exposure to silica sand. When three policies of comprehensive general liability insurance purchased by U.S. Silica’s predecessor from the Travelers Indemnity Company were discovered, U.S. Silica informed Travelers of the silica claims and requested coverage and reimbursement under these Travelers policies. When it failed to receive a response, U.S. Silica filed a declaratory judgment against Travelers. The jury found that Travelers breached its insurance policies when it refused to pay U.S. Silica’s claims for insurance coverage for the silica lawsuits and that Travelers owed U.S. Silica $8 million as a result. The circuit court denied Travelers’ post-trial motions for judgment as a matter of law or for a new trial and awarded U.S. Silica attorney’s fees and prejudgment interest. The Supreme Court reversed, holding that U.S. Silica failed to demonstrate that its explanation for its significant delay in notifying Travelers of the silica claims was reasonable, and therefore, U.S. Silica was not entitled to coverage under the subject Travelers policies. Remanded with directions to enter an order granting Travelers’ post-trial motion for judgment as a matter of law. View "Travelers Indem. Co. v. U.S. Silica Co." on Justia Law