Liggett Loses Bid for Insurance Firm Defense

Liggett Group Inc. lost a bid to force insurance companies to defend it from tobacco-related litigation, as the company faces mounting legal fees and millions of dollars in pending jury awards.

President Judge Henry DuPont Ridgely of the Delaware Superior Court found in favor of the insurance companies on nine summary judgment motions in lawsuits that covered policies held from 1970 to 2000, according to court documents.

Mitchell Lathrop, a partner at New York’s Luce Forward Hamilton Scripps who represents the insurers, said Liggett tried to recover from 33 insurance companies, including Affiliated FM Insurance Co., Federal Insurance Co., Chubb Corp. and Zurich Financial Services. Liggett was seeking “hundreds of millions so far” in defense and indemnity, Lathrop said.

This was the first time a tobacco company sued insurers to defend it, Lathrop said.

A Liggett spokesman said the company was considering its options after the ruling.

“The ruling will probably forestall cigarette companies from any further attack,” Lathrop said. The insurers haven’t yet decided what they will do if Liggett appeals.