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The Federal-Mogul Asbestos Personal Injury Trust v Federal-Mogul Ltd & others

The Federal-Mogul Asbestos Personal Injury Trust was represented by Iain Milligan QC in a bold attempt to obtain declaratory relief from Eder J in respect of the obligations of the reinsurers of claims for asbestos personal injuries against T&N Plc in the US which were covered by an asbestos liability policy.  T&N was insolvent and, as a result of orders made by the US Bankruptcy Court, itself had no interest in the outcome, whereas the Trust did.  Eder J held that the Trust had no standing to make the claims because it was not a party to the policy or the reinsurance, but went on to hold that, even if the Trust had had standing, the reinsurers had not to date breached their claims handling obligations.   However, the judge did uphold the Trust’s claims for declaratory relief relating to the method of discharging the obligations of T&N to those who had been injured by T&N’s products.

Member of Chambers: Iain Milligan QC for