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New York appeals court cuts $6.6 million from Fireman's Fund asbestos bill
The ruling ties the cut to a policy requirement that policyholders submit a definite claim within 12 months of a payment, which the court said was missed.
A New York appeals court reduced more than $6.5 million from Fireman's Fund Insurance Company’s asbestos-coverage bill, ruling that policyholders missed a deadline built into their excess liability policies. The Appellate Division, Fourth Department, ruled July 24, 2026, in a long-running coverage dispute involving Carrier Corporation and Elliott Company against Fireman's Fund over who should pay for defense costs and indemnity in underlying asbestos lawsuits. According to the decision, the court dismissed most of Fireman's Fund’s arguments but agreed with the insurer’s main point on the largest portion of the money at issue. It found Fireman's Fund did not have to pay $6,585,472 for payments the manufacturers made from August 18, 2014, through December 31, 2016 because the policies required policyholders to submit a “definite claim” within 12 months of a payment and they did not do so. The court also vacated that award based on the condition precedent nature of the requirement. On other issues, it declined to disturb findings that subclinical injuries could qualify as injury-in-fact and rejected arguments that defense costs tied to later-dismissed claims should not erode underlying policy limits. The decision was not corrected at the time the opinion text ended, and it highlighted the timing lesson for claims teams.