Court says opioid trust’s coverage fights belong in England, Wales – Business Insurance
eng vs wales

Court says opioid trust’s coverage fights belong in England, Wales – Business Insurance

The Missouri Court of Appeals affirmed a ruling that a forum selection provision in policies issued to Mallinckrodt requires a fight between an opioid trust and the drugmaker’s insurers to be decided by a court in England or Wales.

A three-judge panel said in Tuesday’s decision in Opioid Master Disbursement Trust II v. Ace American Insurance et al. that the forum selection provision was clear and unambiguous and not unfair or unreasonable.

The opioid master disbursement trust was created to benefit entities and individuals harmed by opioids made by Mallinckrodt, which first filed for bankruptcy in October 2020. At that time, the drugmaker said it had spent more than $1.6 billion to settle opioid-related litigation.

In June 2022, the trust filed a petition in Missouri state court seeking a declaration that insurers such as Allianz Global Corporate & Specialty SE, Aspen Insurance UK Ltd. and HDI Global SE were obligated to cover the liability for opioid mass tort claims. The insurers moved for dismissal, arguing that the forum selection clause in the policies requires that any disputes be litigated in England or Wales, court records show.

The trial court judge dismissed the dispute, finding the trust did not meet its burden to show that the clause was unfair or unreasonable.   

Representatives for the parties did not respond to requests for comment.

 

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