Travelers Insurance to Pay Out $440 Million in Settlement Claims
After years of court proceedings, Travelers Insurance will finally be able to pay out the $440 million settlement money owed to those involved in a class action lawsuit forasbestos-related claims. Chicago based law group,Goldberg Kohn, proclaimed victory as the recent Supreme Court ruling upholds a 1986 ruling against theJohns-Manville Corp and protects Travelers Companies Inc from any new asbestos claims regarding the corporation.
In the past, Johns-Manville Corp filed for bankruptcy andthe settlement had originally been approved in the Bankruptcy Court and District Court. However, the Second Circuit Court of Appeals over-turned the original verdict and the recent victory upholds the original decision of the Courts and protects Travelers from any other claims directly associated withtheJohns-Manville Corp and asbestos.
Only time will tell how this ruling affects the amount policyholders will need to dole out for their Travelers insurance rates. However, since Travelers insurance has been assured that they are not responsible for future lawsuits in conjunction with this situation, the current rates may remain status quo.