Illinois Tool Works purchased commercial liability policies many years ago from Travelers Casualty Surety Co. and Century Indemnity Co. They were purchased by Illinois Tool Works for the years 1971 through 1987.The policies were designed to have the insurance companies defend Illinois Tool Works against toxic-tort injury complaints that did not allege dates or exposure or injury.
The insurance companies reportedly declined to defend Illinois Tool in thousands of toxic-tort cases in which the plaintiffs alleged that their injuries were caused by exposure to hazardous substances, which included asbestos, benzene and manganese in welding supplies and other products distributed by other companies Illinois Tool started buying in 1993. According to the facts in the case, Illinois Tool did not enter the welding product market until 1993, while the last insurance policy that was issued expired in 1987.
A Cook County judge granted Illinois Tool’s request for summary judgment. On appeal, the tort complaints were characterized this way: Continue reading