Tribune Files Lawsuit Against Marsh Unit

Tribune Co., owner of the Los Angeles Times and 26 television stations, sued a Marsh & McLennan Cos. unit for recommending the company transfer workers’ compensation obligations to a now-insolvent insurer.

Marsh Inc. in 1998 recommended that Times Mirror Co., then the owner of The Times and Baltimore Sun, transfer the publisher’s self-insurance of workers’ compensations liabilities to Reliance National Indemnity Co., the suit said. Reliance liquidated in October 2001 and can no longer pay claims.

Chicago-based Tribune, which purchased Times Mirror in 2000, claims it has been forced to reassume the liabilities that Times Mirror paid, a total of $60 million, to Reliance under the program proposed by Marsh. The negligence and breach-of-fiduciary-duty suit seeks at least $8 million.

A spokeswoman for Marsh & McLennan could not be reached for comment.