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Member, Beacon International Group, Ltd.
SPOKANE, Wash.—A federal judge in Spokane, Wash., has barred London insurers from proceeding with rare “anti-suit” motions in Canada concerning environmental liability coverage.
The case of Teck Metals Ltd. vs. Certain Underwriters at Lloyd's of London and Certain London Market Insurance Cos. involves a Vancouver, British Columbia, mining company that sued its insurers in 2005 over liability policy coverage, court records show.
While Teck sued in Washington state, the insurers filed an anti-suit motion in a British Columbia court that sought to stop Teck from proceeding in Washington state.
On Tuesday, U.S. District Court Judge Lonny R. Suko entered a permanent injunction that prohibits the insurers from proceeding with their anti-suit motions in British Columbia, saying the ruling was necessary to protect his court's jurisdiction.
Anti-anti suit injunctions are rare, said Mark Plumer, who represents Teck and is a partner in the District of Columbia office of law firm Orrick, Herrington & Sutcliffe L.L.P.
An anti-suit motion attempts to stop a lawsuit from proceeding.
The injunction enables Tech to pursue its case in the jurisdiction where the pollution is alleged to have occurred and where the judge handling the underlying case is located, Mr. Plumer said.
In 2006, the 9th U.S. Circuit Court of Appeals ruled that Teck is subject to U.S. pollution law over hazardous waste that allegedly migrated south into northeastern Washington state after it was disposed of in British Columbia. That ruling marked the first time a non-U.S. operation faced pollution liability under U.S. law for operations conducted outside the United States, attorneys said.