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The War Profiteers - War Crimes,
Kidnappings & Torture |
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November 21st,
2009 - Lloyd’s Appeals Ruling on Colombian Drug Eradication Liability |
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Lloyd’s Appeals Ruling on
Colombian Drug Eradication Liability By Andrew Frye Bloomberg News November 21, 2009 Lloyd’s of London
underwriters appealed a Delaware court’s ruling that assigned them liability
for legal costs tied to more than 3,000 people seeking damages from a
U.S.-sponsored plan to eradicate drugs in Colombia. The Lloyd’s underwriters,
who wrote insurance for DynCorp International Inc. as it sprayed drug crops
from the air starting in 2000, said in their Nov. 19 appeal that coverage was
for “aircraft hazards” and doesn’t extend to chemical exposure claims. A
Delaware state court judge in Wilmington ruled Nov. 9 that the insurers had a
duty to defend DynCorp in the lawsuits. “The court misapprehended
the very nature of the insurance procured through the policies: aviation
liability insurance,” the appeal said. “Companies seek aviation liability
insurance to cover the risk of injuries to aircraft and persons aboard, not
chemical-exposure claims.” DynCorp, which flies the
aerial spraying operations under contract for the U.S. Department of State,
is defending itself in lawsuits filed on behalf of three Colombian provinces
and about 3,250 individuals. The suits, consolidated into a single case in
U.S. District Court in Washington, contend Falls Church, Virginia-based
DynCorp violated international and Colombian law, and accuses the company of
trespassing, assault and negligence. Delaware Judge Jan Jurden
earlier issued an order of summary judgment, ruling that the Lloyd’s
underwriters were required under the policies they sold to DynCorp to defend
the company or pay its legal costs in the cases. “The court finds that the
policies provide plaintiffs coverage and defense for bodily injury or
property damage” under certain conditions, which DynCorp met, the judge
wrote. “Defendant insurers have a duty to defend.” ‘We’re Paying’ “We think we were absolutely
upfront and transparent about what the insurance was covering,” said Douglas
Ebner, a spokesman for DynCorp. “We’re paying for this and we should be
receiving it.” The State Department
provides DynCorp with indemnification, “subject to available funding,”
according to the firm’s third- quarter regulatory filing. DynCorp also trains security
forces in countries such as Iraq and services aircraft, weapons and other
support equipment. The company’s largest shareholder is private-equity firm
Veritas Capital Management, with a 38 percent stake as of Aug. 5, according
to Bloomberg data. Lee Ann Zondag, a
spokeswoman for Lloyd’s, said the company doesn’t comment on pending
litigation. Jason Donner, the chief financial officer for Veritas, referred
questions to DynCorp’s Ebner. DynCorp is represented by
Potter Anderson & Corroon LLP and Anderson Kill & Olick PC. The
Lloyd’s underwriters have Christie Pabarue Mortensen & Young PC and Locke
Lord Bissell & Liddell LLP as counsel. The case is DynCorp v.
Certain Underwriters at Lloyd’s, London, 08c-09-218 JRJ, Delaware Superior
Court, New Castle County (Wilmington). External link: http://www.bloomberg.com/apps/news?pid=20601086&sid=awzsRav95u3g |