Sherwin-Williams paint store in Baltimore, MD. September 14, 2020. Photo: Diego M. Radzinschi/ALMInsurers Dodge Sherwin-Williams' Claim for $102M Lead Paint Abatement Payment, State High Court Rules
This week, the Ohio Supreme Court unanimously agreed that the abatement fund payment did not constitute "damages" under Sherwin-Williams' insurance contracts.
December 12, 2024 at 01:09 PM
5 minute read
Closing another dispute over whether insurers are obligated to indemnify paint manufacturers in underlying litigation, the Ohio Supreme Court unanimously sided with insurance companies for Sherwin-Williams that coverage did not include payments into a lead paint abatement fund.
Following nearly two decades of the underlying litigation in California, paint companies ConAgra, NL Industries, and Sherwin-Williams agreed to settle public nuisance claims for allegedly promoting lead-based paint despite its known dangers. In separate actions, the three corporations subsequently sought declaratory judgment against Certain Underwriters at Lloyd's of London—among other insurers—to cover each of their $101.7 million portions owed to a government-administered lead paint abatement fund. The funds were earmarked to help remove lead-based paint in communities, including Santa Clara, California.
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