Ninth Circuit Recognizes the Potential for Coverage in Employee’s Suit Alleging Chemical Exposure

The Ninth Circuit reversed a lower court and held that insurer Atlantic Specialty (as successor to One Beacon) had a duty to defend an employee’s suit against his employer, a semiconductor manufacturer. In the underlying claim, the employee alleged exposure to chemicals at work caused birth defects in his son and sought $270M in damages. One of the manufacturer’s insurers (Liberty) defended the manufacturer and sought contribution from the manufacturer’s other insurer, Atlantic Specialty….
By: Nossaman LLP