 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
Eon Labs Manufacturing6/30/2000
Submitted: February 8, 2000
Upon appeal from the Grant of Summary Judgment by the Superior Court in favor of Appellee, Reliance Insurance Company. AFFIRMED.
The central question in this appeal is whether an insurer of a manufacturer has a duty to defend third party claims (in this case mass tort claims known as the "fen-phen suits") against that manufacturer where: (1) the insurer's policy excludes coverage for bodily injury claims of third parties against the manufacturer "arising out of your product" (the "products hazard exclusion"); and (2) the third party claims are grounded upon product liability torts allegedly caused by the manufacturer's product when used and promoted for use in combination with the products of others.
The Superior Court granted summary judgment in favor of the insurer and against the manufacturer-insured, holding that the "arising out of your product" language in the products hazard exclusion was unambiguous and specifically excluded coverage even where the fen-phen suits also involved the products of others. We agree and affirm.
Procedural History and Underlying Facts
There are pending in other fora numerous individual and class action product liability claims for bodily injury of various users of the fen-phen drug combination against Eon Labs Manufacturing, Inc. ("Eon"), the appellant in this appeal, and other drug manufacturers. Eon produced, promoted and sold the generic drug phentermine. The other manufacturers defending the fen-phen suits produced the diet drug fenfluramine or dexfenfluramine with which phentermine was sometimes combined, promoted and sold. Thus, the name "fen-phen."
Individuals and putative classes in the fen-phen suits allege injury as a result of ingesting either phentermine produced by Eon alone or in combination with the diet drugs fenfluramine or dexfenfluramine. The fen-phen combination was allegedly touted by the various manufacturers as producing an extremely effective diet drug. The fen-phen suits also contain claims based on warranty, misrepresentation, failure to warn, fraud, conspiracy and concerted action. Eon placed in the Superior Court record six of these third party complaints, which were examined by the Superior Court and on which its decision was predicated.
Procedurally this case arose in the context of a declaratory judgment action initiated by Steadfast Insurance Company ("Steadfast") and another insurer against Eon, other drug manufacturers and other insurance companies, including Reliance Insurance Company ("Reliance"), the principal prevailing party in the Superior Court and the Appellee here. The sole issue before us is the Superior Court's decision that Reliance does not have a duty to defend Eon in the fen-phen suits.
We need not detail the various motions in the Superior Court that have led to this appeal. We need not set forth in detail the factual context of the Superior Court's decision because those facts and procedural steps are set forth in the excellent central opinion of that Court dated June 1, 1999, and the Court's subsequent letter opinion on reargument dated August 18, 1999. Reference is made to those opinions for the details and the Superior Court's analysis.
The Superior Court's June 1, 1999 memorandum opinion denied Eon's motion for summary judgment in which Eon sought an order that Reliance is obligated to defend the fen-phen suits. In denying Eon's motion for summary judgment, the Court held that "Reliance has no duty to defend." Thereafter, Eon sought certification by the Superior Court and this Court of an interlocutory appeal in this Court (which was subsequently refused by both Courts). Meanw
Page 1 2 3 4 Delaware Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|