Fireman's Fund Insurance Company et al v. Eagle, Inc.

Filing 66

FINDINGS OF FACT AND CONCLUSIONS OF LAW, Granting 64 Joint MOTION to establish and approve a qualified settlement fund filed by Associated Indemnity Company, American Automobile Ins. Co., American Insurance Company, Eagle, Inc., Fireman's Fund Insurance Company.. Signed by Judge Jay C. Zainey.(jrc, )

IN THE UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF LOUISIANA

FIREMAN’S FUND INSURANCE
COMPANY, AMERICAN INSURANCE
COMPANY, AMERICAN AUTOMOBILE
INSURANCE COMPANY AND
ASSOCIATED INDEMNITY COMPANY

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CIVIL ACTION NO. 2:12-cv-01865
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JUDGE: JAY C. ZAINEY
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MAGISTRATE: ALMA L. CHASEZ
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VERSUS
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EAGLE, INC.
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ORDER
This matter came before the Court on the Uncontested Joint Motion of Plaintiffs
Fireman’s Fund Insurance Company, American Insurance Company, American Automobile
Insurance Company and Associated Indemnity Company (collectively, “Fireman’s Fund”) and
defendant Eagle, Inc. (“Eagle”) to establish and approve a Qualified Settlement Fund under
Section 468B of the Internal Revenue Code of 1986, as amended (“I.R.C.”). Having considered
the Joint Motion, together with the exhibits to the Joint Motion, the Court hereby finds and
Orders as follows:
Findings of Fact:
1.1

Fireman’s Fund and Eagle have entered into a final settlement agreement titled

Confidential Settlement Agreement (“Fireman’s Fund Settlement Agreement”). The Fireman’s
Fund Settlement Agreement resolves, among other things, all coverage issues for asbestos claims
under those policies Federal allegedly issued to Eagle. Fireman’s Fund disputes that it issued any
coverage to Eagle that responds to the asbestos claims.

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1.2

The Fireman’s Fund Settlement Agreement provides that Fireman’s Fund shall

pay money into a Qualified Settlement Fund, as defined by Section 468B of the I.R.C. and the
regulations promulgated thereunder.
1.3

The purposes of the Eagle QSF is to provide funds to pay for costs incurred by the

parties in connection with claims, suits and demands alleging personal injury and bodily injury
from alleged exposure to asbestos-containing materials (“Asbestos Claims”), to pay the legal
fees of the parties related to such Asbestos Claims, to pay for legal fees and settlement costs of
Asbestos Claims asserted against Eagle, to pay for administrative and management costs, and to
do all things necessary or appropriate in connection with the Eagle QSF.
1.4

A separate limited liability company has been formed under the laws of the State

of Delaware to act and be constituted as the Eagle QSF pursuant to an operating agreement
(“Eagle QSF LLC”).
Conclusions of Law:
2.1

Treasury Regulation § 1.468B-1 authorizes the establishment of a Qualified

Settlement Fund if the requirements of paragraph (c) of the section are met.
2.2

The requirements of Treasury Regulation § 1.468B-1(c)(2) have been satisfied, as

the Fireman’s Fund Settlement Agreements and payment to the Eagle QSF will resolve Eagle’s
claims for coverage Fireman’s Fund in connection with the Asbestos Claims.
2.3

The limited liability company referenced above as the Eagle QSF LLC will be

constituted and will operate as the Eagle QSF.
2.4

The assets of the Eagle QSF are segregated from the assets of both Eagle and the

Transferor insurer, satisfying the requirements of Treasury Regulation § 1.468B-1(c)(3).

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2.5

The referenced settlement agreements, the establishment of the Eagle QSF and the

transfer of the funds to the Eagle QSF pursuant to the terms of the settlement agreements comply
with law as set forth herein.
IT IS THEREFORE ORDERED THAT:
(1)

The Eagle QSF LLC is hereby established as a Qualified Settlement Fund in

compliance with § 468B of the Internal Revenue Code of 1986, as amended, and Treasury
Regulations §§ 1.468B-0, et seq., in order to receive settlement proceeds from the Fireman’s
Fund Settlement Agreement.
(2)

The Court retains continuing jurisdiction in accordance with Income Tax

Regulation § 1.468B-1 (c)(1) of all matters related to this Order; and
(3)

A copy of this Order shall be served upon counsel for Fireman’s Fund within five

(5) days of counsel for Eagle’s receipt.

This is a Test

9/10/13

2/15/05
United States District Judge

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