Federal appeals court refuses to issue ruling in asbestos litigation

A federal appeals court Friday refused to rule on complex asbestos-related litigation filed by a plumbing products manufacturer, saying it lacks jurisdiction.

Milwaukee-based Zurn Industries LLC has “faced a litany” of lawsuits in which claimants allege bodily injury or wrongful death caused by asbestos in its products, according to the ruling by the 3rd U.S. Circuit Court of Appeals in Philadelphia in Zurn Industries LLC v. Allstate Insurance Co. et al.

Zurn used insurance policies issued by various insurance companies. When it was eventually told by its primary and umbrella insurers that it had exhausted those policies’ liability limits, it turned to its excess insurance policies for coverage.

After its excess insurers refused to provide coverage, Zurn sued them in U.S. District Court in Pittsburgh seeking a declaratory judgment that they had a duty to defend the company in the underlying asbestos lawsuits. The excess insurers filed counterclaims seeking their own declaratory judgments.

The district court addressed some of the motions. One of the excess insurers, American International Group Inc. unit American Home Assurance Co., appealed several of the partial judgment orders, and Zurn cross-appealed in response.

A three-judge appeals court panel ruled it had no jurisdiction in the case.  “Ultimately, we conclude that none of the District Court’s orders is the functional equivalent of an injunction; therefore, we do not have jurisdiction to review them,” the ruling said.

The panel also held also that because Zurn’s cross-appeal is dependent on American Home’s, it does not have jurisdiction to review it as well.

Attorneys in the case did not respond to requests for comment.