Sparta Insurance Loses Bid to Avoid Asbestos Exposure Claims

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Sparta Insurance Co. must face claims that executives it insured at Huntington Ingalls Inc.'s Avondale, Louisiana shipbuilding facility played a role in fatally exposing a worker to asbestos in 1971. A federal judge ruled there is evidence indicating nearly all of the executives 'may have had some role in the safety program' during the worker's employment, precluding summary judgment for the insurer.

Why it matters

This case highlights the ongoing legal battles over asbestos exposure claims, which have cost companies billions in liability payouts over the decades. The ruling suggests Sparta Insurance may be held responsible for the actions of executives it covered, even if the company itself was not directly involved in the alleged safety failures.

The details

According to the court order, Michael Dandry Jr. worked at the Avondale shipyard in 1971 and was fatally exposed to asbestos. The lawsuit alleges that a group of Huntington Ingalls executives who were insured by Sparta Insurance played a role in the unsafe conditions that led to Dandry's exposure. The judge found sufficient evidence indicating 'nearly all' of the executives 'may have had some role in the safety program' during Dandry's employment, preventing Sparta Insurance from escaping the claims through summary judgment.

• Michael Dandry Jr. worked at the Avondale shipyard in 1971.

What’s next

The judge's ruling means the case against Sparta Insurance will now proceed to trial, where the company will have to defend itself against the allegations that the insured Huntington Ingalls executives were responsible for the fatal asbestos exposure.