Quimbee logo
DMCA.com Protection Status

ACandS, Inc. v. Travelers Casualty & Surety Co.

435 F.3d 252 (2006)

Case BriefRelatedOptions
From our private database of 35,600+ case briefs...

ACandS, Inc. v. Travelers Casualty & Surety Co.

United States Court of Appeals for the Third Circuit

435 F.3d 252 (2006)

Facts

ACandS, Inc. (plaintiff) was an asbestos-insulation installer that had been involved in asbestos-related litigation since the early 1970s. Between 1976 and 1979, the predecessor of Travelers Casualty & Surety Company (Travelers) (defendant) issued ACandS four insurance policies. Each policy provided coverage up to $1 million per occurrence for claims arising from ACandS’s operations, but only $1 million total for products-liability claims. ACandS quickly exhausted its products-liability coverage on asbestos claims. ACandS and Travelers then agreed to allocate 55 percent of each asbestos claim as a products-liability claim, which Travelers would not pay, and 45 percent of each asbestos claim as an operations claim, which Travelers would pay, subject to the $1-million-per-occurrence restriction. In 2000, Travelers told ACandS that it would begin treating all the asbestos claims as arising from the same occurrence, thus limiting Travelers’ total liability to $1 million under each policy. ACandS sued Travelers in federal district court, seeking a declaration that each asbestos claim was a separate occurrence. In 2001, ACandS sought to increase the 45 percent operations allocation, and the matter went to arbitration. Travelers argued that the operations allocation should be reduced to 0 percent because ACandS had stopped installing asbestos before the insurance policies were issued. While the arbitration was ongoing, ACandS filed for Chapter 11 bankruptcy. The arbitration panel subsequently issued an award agreeing with Travelers and decreasing the operations allocation to 0 percent. ACandS asked the district court to vacate the award, arguing that the award violated the 11 U.S.C. § 362 automatic stay of proceedings against a debtor. The district court confirmed the award and dismissed ACandS’s earlier request for declaratory relief as moot. ACandS appealed.

Rule of Law

Issue

Holding and Reasoning (Alito, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 618,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 618,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 35,600 briefs, keyed to 984 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 618,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 35,600 briefs - keyed to 984 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership