The Delaware Court of Chancery should have enjoined a safety products manufacturer from settling with West Virginia tort plaintiffs by transferring the company’s insurance policy rights to the plaintiffs, an attorney for the insurer told the Delaware Supreme Court last week. Although the Chancery Court refused to stop the transfer because it could create inconsistent judgments with similar cases pending in West Virginia, Pennsylvania and the Delaware Superior Court, the insurer’s counsel said a Chancery Court ruling would actually reduce the chances of conflicting opinions.
“The focus should have been whether an injunction prohibiting further assignments by [Mine Safety Appliances] should have reduced the risk of inconsistent judgments and protected the jurisdiction of the Delaware Superior Court,” said Alan S. Miller of Picadio Sneath Miller & Norton on behalf of North River Insurance Co. “The answer is yes. The chancellor erred by refusing to enjoin prospective assignments.”
