The Michigan Circuit Court has thrown out General Motors' claim against Royal & SunAlliance in respect of asbestos and environmental liabilities.
R&SA has welcomed the court's ruling. In a statement, the insurer said: “The Court's decision to dismiss the complaint against Royal & SunAlliance USA confirms R&SA's long-held resolve that GM's claim was without foundation.”
General Motors had filed a lawsuit in January 2005, alleging that R&SA refused to pay claims for personal injury claims relating to asbestos.
GM also alleged that R&SA would not pay out on property damage associated with environmental contamination.
Investors reacted favourably to the ruling, with R&SA's share price rising to 164.25p as of 12.30pm.
