Continental Casualty Co. v. Indian Head Industries, Inc., No. 18-2152 (6th Cir. 2019)Annotate this Case
Indian Head manufactured gaskets and purchased three consecutive Continental liability insurance policies, providing coverage until 1987. The gaskets contained asbestos. Indian Head was eventually flooded with lawsuits and submitted the claims to Continental. Continental initially defended and indemnified on the claims. In 2005, Continental sued to clarify its rights and obligations. The issues were how to define “bodily injury” under the policy, and how to calculate the indemnity and defense costs. Through a combination of stipulations and court rulings, those issues were resolved; a coverage allocation method was decided. The parties disputed whether that method would apply to costs incurred after December 31, 2012. The district court found that “the same method and calculation must be applied.” In the meantime, the Sixth Circuit had remanded the case: “for further consideration of the question of Continental’s liabilities arising out of those claims that were based on the assumption of liabilities in the 1984 Agreement, but related to injuries that were ongoing thereafter.” After the appeal, Continental moved for further relief under 28 U.S.C. 2202 as a party who successfully obtained a declaratory judgment. The court denied the motion, finding the motion untimely and that the appeal had deprived it of authority to hear the motion. The Sixth Circuit vacated, finding that the court had authority to hear the motion despite the remand. Continental’s motion should be construed as a section 2202 motion for further relief, not a motion to amend the judgment.