Judge dismisses BASF’s South Carolina AFFF coverage dispute with insurers

A federal judge in Charleston, South Carolina, on Friday tossed one of BASF Corp.’s lawsuits against its insurers over coverage for aqueous film-forming foam lawsuits, saying the claims are duplicative of an action initially filed by insurers in New York state court.

The judge in BASF Corp. v. AIU Insurance Co. et al. abstained from BASF’s February lawsuit and sent a lawsuit filed in March led by underwriters at Lloyd’s of London back to federal court in New York because it is a more appropriate forum.

U.S. District Judge Richard Mark Gergel also said New York is a better jurisdiction for the dispute because policies were issued in that state.

BASF is facing thousands of lawsuits in federal and state courts over its manufacture and sale of AFFF that have been consolidated in federal court in South Carolina. BASF and its insurers have filed competing lawsuits over defense and indemnification obligations.

The Florham Park, New Jersey-based manufacturer filed the South Carolina coverage disputes February 27 and a parallel lawsuit in New Jersey state court in March. Also in March, more than 20 insurers led by underwriters at Lloyd’s of London filed a coverage lawsuit in New York state court that BASF later removed to federal court. That suit was later transferred to federal court in South Carolina.

The insurers named in BASF’s South Carolina lawsuit moved to dismissal and asked the court to remand the New York lawsuit.

Representatives for the parties did not respond to requests for comment.