Owens Corning seeks court approval of asbestos coverage settlement, roof tile claims compromise

By Caroline Salls

Pittsburgh, June 15 - Owens Corning requested court approval of a settlement agreement with Royal Indemnity Co. under which Royal will pay the company for asbestos-related "non product" claims and approval to compromise claims in connection with a MiraVista roof tile lawsuit, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the motion, Owens Corning and Royal disagreed over whether the insurer had further coverage obligations.

Royal contends that the claims are subject to policy limits that have been exhausted.

Owens Corning also requested court approval to file the terms of the settlement agreement under seal.

A hearing is scheduled for July 24.

In addition, Owens Corning requested court approval to compromise the claims of Robert Lopez, John Stratton, Kathleen Stratton and Anne Rudin in connection with their lawsuit alleging that Owens Corning sold faulty MiraVista roof tiles.

The company said it will resolve the claims in an effort to avoid substantial litigation costs and any potential damages.

As previously reported, the settlement calls for Owens Corning to pay $11 million in exchange for resolving the claims.

Owens Corning, a Toledo, Ohio, building materials company, filed for bankruptcy on Oct. 5, 2000. Its Chapter 11 case number is 00-3837.

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