Insurer May Avoid Arbitration of Flintkote’s Asbestos Coverage Claims, 3rd Cir. Rules

PHILADELPHIA — An insurer is not equitably estopped from refusing to arbitrate an asbestos-related coverage dispute with Flintkote Co. because there is a lack of clear and convincing evidence that the insurer “embraced” the Wellington Agreement and its arbitration provision, a federal appeals court has ruled.

On Oct. 9, the 3rd Circuit U.S. Court of Appeals found that Aviva PLC’s participation in an earlier mediation process did not bar the insurer from avoiding arbitration because the mediation was not governed by the Wellington Agreement and contained no arbitration requirement.

Flintkote was one of the nation's major suppliers of asbestos-based products. …