5th Circuit Affirms Summary Judgment for Travelers in Asbestos Coverage Dispute

NEW ORLEANS -- The 5th Circuit U.S. Court of Appeals has affirmed an award of summary judgment to an insurer, noting that Texas law "explicitly" rejects product-line successor liability. Ford Bacon & Davis LLC v. Travelers Insurance Co., et al., No. 10-20319 (5th Cir.).

In the March 14 opinion, the 5th Circuit found that since the company purchasing the assets did not expressly assume liability for the assets it purchase, Travelers Insurance Co. had no duty to defend Ford, Bacon & Davis LLC.

"Travelers does not have a duty to defend FBD LLC as FBD LLC is admittedly not an …