Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Best Places to Work
    • Rubber Division IEC
    • War in Ukraine
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • ITEC
    • Silicone
    • Online Exclusive
    • Latex
    • Technical Notebooks
    • Executive Action
    • Government/Legal
    • Opinion
    • Blogs
    • Sustainability
    • Products
    • Wacky World of Rubber
  • Airless Tires
  • Custom
    • Sponsored Content
    • White Papers
  • Resources
    • Directory
    • Classifieds & Mold Mart
  • Data
  • Events
    • RN Events
    • RN Livestreams/Webinars
    • Industry Events
    • Past Events
    • Rubber News M&A Live
    • Ask the Expert
    • Healthcare Elastomers Conference
    • Rubber In Automotive Conference
    • Women Breaking the Mold Networking Forum
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
November 09, 2017 01:00 AM

Michelin wins nearly $2.5 million in case against Federal Insurance

Rubber & Plastics News Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    NEWS_190319992_AR_0_EAZOIXBFYEXK.jpg

    COLUMBIA, S.C.—Federal Insurance Co. must pay Michelin North America Inc. nearly $2.5 million in coverage for a theft from the tire maker's retirement fund, doubling the amount Federal originally offered to pay Michelin.

    Senior Judge Henry M. Herlong Jr. of the U.S. District Court for the District of South Carolina issued an order denying Federal's motion to dismiss the case and granting Michelin's motion for summary judgment for Federal to pay Michelin an extra $2,459,958 on its policy.

    In January 2016, Michelin found that fiduciaries of its retirement plan had committed fraud, stealing more than $8 million from the plan.

    According to Michelin's complaint filed June 19 with the South Carolina court, the tire maker filed a $5 million claim with Federal, the maximum claim it could make under its policy with the insurer.

    "For more than a year following this notification, (Federal) refused to pay any portion of the claim despite continued demands," the complaint said.

    "Throughout the process, it became clear that (Federal) looked for reasons not to pay the claim, even though it should have paid the claim immediately," it said.

    In April 2017, Federal offered to pay Michelin $2.54 million. Federal claimed that the loss must be granted on a pro-rata basis, considering the policy that Michelin's parent company, Compagnie Generale des Establissements Michelin, had with the American International Insurance Group.

    Michelin argued that Federal was required to pay the full claim. In his order, Herlong agreed.

    "Federal is essentially asking the court to resolve a dispute between it and another insurance company that is not a party to this action," Herlong wrote.

    "The Federal policy is a binding contract between (Michelin) and Federal, the failure to pay the full policy limits constitutes a breach, and the damages are the difference between the amount paid and the full policy limits," he wrote.

    Letter
    to the
    Editor

    Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    Most Popular
    1
    EV owners: OE tires falling drastically short of treadwear expectations
    2
    80 years later, PPG silicas still driving tire performance
    3
    Michelin reaches deal to sell Russian operations
    4
    Bolder, Liberty Tire collaboration sets stage for more circular industry
    5
    VMI outlines tire technology upgrades for efficient, sustainable manufacturing
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Best Places to Work
      • Rubber Division IEC
      • War in Ukraine
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • ITEC
      • Silicone
      • Online Exclusive
      • Latex
      • Technical Notebooks
      • Executive Action
      • Government/Legal
      • Opinion
      • Blogs
        • Products
        • Wacky World of Rubber
      • Sustainability
    • Airless Tires
    • Custom
      • Sponsored Content
      • White Papers
    • Resources
      • Directory
      • Classifieds & Mold Mart
    • Data
    • Events
      • RN Events
        • Healthcare Elastomers Conference
        • Rubber In Automotive Conference
        • Women Breaking the Mold Networking Forum
      • RN Livestreams/Webinars
      • Industry Events
      • Past Events
      • Rubber News M&A Live
      • Ask the Expert
    • Advertise
    • DIGITAL EDITION