Asbestos Coverage Action Barred by Claim Preclusion, 6th Cir. Majority Rules

CINCINNATI — A federal appellate court has affirmed that an asbestos coverage action filed by the William Powell Co. is barred by claim preclusion because its state law claims for breach of contract, which were resolved by a state court, arise from the same transaction or occurrence as its federal claims for breach of contract and bad faith.

In a Nov. 18 opinion, the 6th Circuit U.S. Court of Appeals majority explained the claims in both actions were related in origin — WPC’s policies with OneBeacon Insurance Co. — and motivation — WPC’s effort to get OneBeacon to defend …