GM Scores First Round of Asbestos Trial

Article Added August 9th, 2006 - Print This Story - Bookmark This Story

GM, the American motor mogul, has taken the first round of a legal dispute between them and Royal & SunAlliance, a British insurance company. Documents that could incriminate Royal & SunAlliance, and were found by GM, were deemed allowable in the trial.

The trial between American General Motors and British Royal & SunAlliance Insurance over asbestos claims is heating up before it even starts. GM had requested that documents incriminating the UK company be allowed in the trial, while RSA states that the documents should be thrown out on grounds of private correspondence. A Michigan judge allowed the documents, considering that they were from a representative of the company to the company’s legal adviser.

Following the decision, a court date this week that should have set the trial date for September is now expected to yield a date of early 2007. GM is willing to wait for the trial, though, now that the memo is admissible, claiming that it is the “smoking gun” that will hold RSA responsible for the asbestos claims. The start of the row was after plaintiffs came forward for compensation due to asbestos exposure in the GM plants; GM says that the insurance company should be the one to pay for the victims care.

Article Added August 9th, 2006 - Print This Story - Bookmark This Story