Sick mine workers allege insurer delaying medical payments

Mar 21, 2022, 1:49 AM | Updated: 1:57 pm
FILE - This Feb. 17, 2010, aerial file photo, shows the town of Libby, Mont. Mine workers in Libby ...

FILE - This Feb. 17, 2010, aerial file photo, shows the town of Libby, Mont. Mine workers in Libby who were sickened and killed by toxic asbestos exposure and their heirs are suing an insurance company for allegedly stalling legal settlements and medical payments. (AP Photo/Rick Bowmer, File)

(AP Photo/Rick Bowmer, File)

              FILE - In this April 27, 2011, file photo, the entrance to downtown Libby, Mont., is seen. Exposure to asbestos dust from a vermiculite mine on Libby's outskirts has sickened and killed mine workers and others in the mountain town. (AP Photo/Matthew Brown, File)
            
              FILE - This Feb. 17, 2010, aerial file photo, shows the town of Libby, Mont. Mine workers in Libby who were sickened and killed by toxic asbestos exposure and their heirs are suing an insurance company for allegedly stalling legal settlements and medical payments. (AP Photo/Rick Bowmer, File)

BILLINGS, Mont. (AP) —

Attorneys for Montana mine workers sickened and killed by toxic asbestos exposure filed a lawsuit against Zurich American Insurance on Monday for allegedly stalling legal settlements and medical payments after transferring the workers’ claims to investors who can profit off the delays.

The lawsuit was filed in U.S. District Court in Great Falls on behalf of 17 former workers and representatives of 29 deceased workers who developed lung cancer and other diseases following exposure to asbestos during the 1960s and 1970s at a W.R. Grace & Co. vermiculite mine in Libby, Montana.

The legal dispute over responsibility for their suffering dates back two decades, to when news reports about sick and dying mine workers and residents in the remote mountain area triggered an emergency cleanup by federal authorities. That cleanup is ongoing and the contamination is blamed for hundreds of deaths among mine workers, their families and others in the area near the U.S.-Canada border.

The Montana Supreme Court in 2020 ruled that insurer Maryland Casualty Co. — now owned by Zurich — should have warned the workers about small fibers of asbestos in vermiculite dust that can be easily inhaled and damage a person’s lungs. Maryland Casualty provided workers’ compensation coverage at the now-shuttered W.R. Grace mine.

But rather than move to resolve the many remaining liability cases still pending against it, Zurich has paid to transfer at least some of the workers’ claims to investors, said Allan McGarvey, an attorney for the workers. The investors, including Enstar Group Ltd., can hold onto and profit off that money even as the workers’ health further deteriorates, according to McGarvey and the lawsuit.

“They are making huge amounts of money on the money that should be paid to claimants,” McGarvey said. “They are literally investing in human suffering.”

Zurich is part of Switzerland-based Zurich Insurance Group, which has operations around the globe. Spokesperson Robyn Ziegler said Zurich had no comment on Monday’s legal complaint.

A person who answered the phone at Enstar Group in Bermuda referred questions to the firm’s office in the U.S., where telephone messages seeking comment were not immediately returned.

The lawsuit seeks an injunction that would prevent any third-party influence over the mine workers’ claims and force Zurich to pay medical, hospice and other expenses from the workers’ illnesses.

The workers and heirs listed as plaintiffs in the case are among hundreds of people with legal claims pending against Zurich for its liability in the town.

A former Libby mine worker with lung disease now living in Oregon was awarded $36.5 million in February by a Montana jury in one of the lawsuits against Zurich.

McGarvey acknowledged there’s no Montana law that specifically prevents an entity from acquiring someone else’s legal liability and then profiting off delayed payments. But he said it undermines rules intended to make insurance companies act in good faith.

“Certainly investors should not be able to delay settlements,” he said.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Evelyn Knapp, a supporter of former President Donald, waves to passersby outside of Trump's Mar-a-L...
Associated Press

Trump legal woes force another moment of choosing for GOP

From the moment he rode down the Trump Tower escalator to announce his first presidential campaign, a searing question has hung over the Republican Party: Is this the moment to break from Donald Trump?
17 hours ago
FILE - The Silicon Valley Bank logo is seen at an open branch in Pasadena, Calif., on March 13, 202...
Associated Press

Army of lobbyists helped water down banking regulations

It seemed like a good idea at the time: Red-state Democrats facing grim reelection prospects would join forces with Republicans to slash bank regulations — demonstrating a willingness to work with President Donald Trump while bucking many in their party.
17 hours ago
FILE - This Sept. 2015, photo provided by NOAA Fisheries shows an aerial view of adult female South...
Associated Press

Researchers: Inbreeding a big problem for endangered orcas

People have taken many steps in recent decades to help the Pacific Northwest's endangered killer whales, which have long suffered from starvation, pollution and the legacy of having many of their number captured for display in marine parks.
2 days ago
FILE - Hiring signs are displayed at a grocery store in Arlington Heights, Ill., Jan. 13, 2023. Emp...
Associated Press

Pay transparency is spreading. Here’s what you need to know

U.S. employers are increasingly posting salary ranges for job openings, even in states where it’s not required by law, according to analysts with several major job search websites.
2 days ago
Meadowdale High School 9th grade students Juanangel Avila, right, and Legacy Marshall, left, work t...
David Klepper and Manuel Valdes, Associated Press

Seattle high school teacher advocates for better digital literacy in schools

Shawn Lee, a high school social studies teacher in Seattle, wants to see lessons on internet akin to a kind of 21st century driver's education, an essential for modern life.
2 days ago
South Carolina Senators hear from the parents of people who died from fentanyl overdose on Jan. 19,...
Associated Press

With overdoses up, states look at harsher fentanyl penalties

State lawmakers nationwide are responding to the deadliest overdose crisis in U.S. history by pushing harsher penalties for possessing fentanyl and other powerful lab-made opioids that are connected to about 70,000 deaths a year.
2 days ago

Sponsored Articles

SHIBA volunteer...

Volunteer to help people understand their Medicare options!

If you’re retired or getting ready to retire and looking for new ways to stay active, becoming a SHIBA volunteer could be for you!
safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.
Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.
SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Sick mine workers allege insurer delaying medical payments