Despite tobacco exclusions in its liability policies, Liggett Group, a cigarette manufacturer based in Wilmington, Del., has filed suit against 32 insurers seeking coverage for claims made against the company. Employing a tactic used in many pollution liability cases, Liggett, a division of the Brooke Group, is arguing that coverage should be available under the personal and advertising injury sections of its policies.
Liggett was the first tobacco company to settle Medicaid reimbursement suits, and has now become the first to bring an action against its insurers. The suit seeks declaratory relief following insurers‘ refusal to defend and indemnify the company for product liability litigation costs. Although no specific damage figure has been quoted, it is expected that hundreds of millions of dollars may be involved.
