PracticeAccounting FirmsKBP files lawsuit against Royal & Sun Alliance

KBP files lawsuit against Royal & Sun Alliance

Administrators at Kroll Buchler Phillips have filed a lawsuit against insurer Royal & Sun Alliance on behalf of Turner & Newall, a subsidiary of bankrupt US engineering giant Federal Mogul.

Link: ‘Federal Mogul collapse distorts the truth’

A preliminary hearing on the lawsuit, expected to go to trial next January, took place at the beginning of last week. The administrators allege RSA is liable to pay compensation to an undisclosed number of former T&N employees suffering from asbestos-related diseases.

Federal Mogul filed for Chapter 11 bankruptcy protection in October 2001 after revealing a massive number of lawsuits amounting to around £1.2bn filed against it.

T&N also purchased a £500m layer of insurance against asbestos liability which will be triggered if claims filed after 30 June 30 1996 exceed £690m, according to trade journal Insurance Day.

On Friday, RSA’s shares plunged by 14% to 100.25p on news of the lawsuit.

Related Articles

Sexual harassment – is accountancy next for #MeToo?

Accounting Firms Sexual harassment – is accountancy next for #MeToo?

3d Karen Baxter, Lewis Silkin
Johnston Carmichael CEO appointed as ICAS president

Accounting Firms Johnston Carmichael CEO appointed as ICAS president

4w Emma Smith, Managing Editor
British Accountancy Awards 2018 – entries open!

Accounting Firms British Accountancy Awards 2018 – entries open!

1m Emma Smith, Managing Editor
Is the accountancy sector facing an international talent crisis?

Accounting Firms Is the accountancy sector facing an international talent crisis?

1m Lewis Silkin
RSM appoints new Chief Operating Officer

Accounting Firms RSM appoints new Chief Operating Officer

2m Alia Shoaib, Reporter
RSM announces 11 partner promotions

Accounting Firms RSM announces 11 partner promotions

2m Emma Smith, Managing Editor
BDO hires former AstraZeneca creative director as head of digital and innovation

Accounting Firms BDO hires former AstraZeneca creative director as head of digital and innovation

2m Emma Smith, Managing Editor
What does the future hold for listed accountancy firms?

Accounting Firms What does the future hold for listed accountancy firms?

2m Fergus Payne, Lewis Silkin