Berkshire insurance unit sues Goodyear over asbestos claims

Thu Apr 6, 2017 12:21pm EDT
 
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By Jonathan Stempel

(Reuters) - An insurance unit of Warren Buffett's conglomerate Berkshire Hathaway Inc (BRKa.N: Quote) said it has sued Goodyear Tire & Rubber Co (GT.O: Quote) to avoid having to cover asbestos-related injury claims that Goodyear said nothing about for seven years.

Berkshire Hathaway Specialty Insurance Co is seeking unspecified damages in its federal lawsuit filed on Wednesday in Akron, Ohio, where Goodyear is based.

Goodyear spokesman James Peate said the company does not discuss pending litigation.

Berkshire said Goodyear claimed to have in 2008 exhausted a policy from another insurer for the asbestos claims, but waited until November 2015 to seek reimbursement from Berkshire for "several millions of dollars" under an "excess" policy.

It also said Goodyear had never asked for help in defending against the claims prior to November 2015.

About 62,000 claims are pending against Goodyear in states including Florida, Maryland, New York, Pennsylvania and Texas over alleged exposure to asbestos-containing products as floor tiles, furnace hoses, gaskets and heat shields, Berkshire said.

Many companies stopped using asbestos by the mid-1970s after it was linked to cancer and other diseases. The effects of exposure to the substance can take decades to surface.

Goodyear's excess policy, issued by Berkshire predecessor Stonewall Insurance, covers the period from July 1, 1976 to July 1, 1977, Berkshire said.   Continued...

 
FILE PHOTO -  The Goodyear Tire and Rubber Co storefront is seen in Westminster, Colorado August 27, 2013.    REUTERS/Rick Wilking/File Photo