In a ruling that underscores the tangled intersection of bankruptcy and asbestos liability, a Connecticut federal judge has approved a $9 million settlement between Chubb subsidiaries and the Chapter 7 estate of The Nash Engineering Co., resolving allegations of fraudulent insurance transfers.
A Deal to Pay Asbestos Victims Faster
U.S. District Judge Janet C. Hall signed off on the deal Thursday, greenlighting payouts that Nash’s trustee said would accelerate compensation for asbestos victims otherwise left waiting for slow-moving tort litigation. The agreement allows injured parties to file claims through the bankruptcy process before creditors are paid.
In addition to the $9 million, Century Indemnity Co. and Pacific Employers Insurance Co. will contribute $1.5 million toward Nash’s legal expenses, Judge Hall noted. Both insurers had covered Nash in the 1970s and 1980s under $50 million excess liability policies.
The Controversial Buyback Deal
The roots of the Pump Co $9M suit trace back to 2020, when Nash, Century, and Pacific entered into an insurance buyback arrangement worth $14.35 million. The insurers agreed to help cover asbestos liabilities and manage Nash’s legal defense. By 2021, more than $11.4 million had been paid, leaving less than $3 million to satisfy future claims. When liabilities ballooned beyond that amount, Nash declared bankruptcy.
Chapter 7 trustee George I. Roumeliotis accused Nash of intentionally undervaluing its liabilities—potentially exceeding $313 million—and fraudulently transferring insurance rights back to the carriers. He argued the company acted with intent to delay or defraud asbestos victims.
