Reichhold asking judge to force its insurer to pay off lawsuit - Triangle Business Journal:

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A complaint, which was file d by National Union FireInsurance Co. of Pa., has been working its way throughu the United States District Courf for the Middle District of North Carolinaw sinceOctober 2006. National Union seeks a judge'xs ruling that it does not have to compensate Reichholdx for damages resulting fromtwo lawsuits. Reichhold argues in court filings that the insurance company does owe it indemnituy in relation to coverage for those suitss and other pending oranticipated claims. Reichhold spokeswomamn Cris Masselle declined to commenty onthe case, and Reichhold CEO John Gaithefr was unavailable for National Union is an affiliated company of America International Group, or AIG.
Michael Arcaro, a spokesman for AIG, was similarlyt tightlipped. "Our policy is not to comment onongoingh litigation," says Arcaro. The two underlyin g lawsuits in question trace their origins to litigation betweenj Reichhold andPompano Beach, Fla.-based Nebula Glasd International, which does businessz as Glasslam. Reichhold manufactured resin materialfor Glasslam, whicnh develops glass laminating resins that it sells to manufacturers of safetty and hurricane-resistant glass, from 1996 to 2001.
Glasslamj in 2002 filed a lawsuit againstr Reichhold claiming that the Durham company had altered the chemicak makeup of a resin it was producing forGlasslamm - a change that Glasslam allegesd caused the product to fail. For in some cases, it caused the glass to turn yellowwor delaminate. Glasslam won a $22.65 million verdict in a federal court in southern Floridaz against Reichhold inJune 2004. The judgment was affirmef on appeal, and court documents filed by Reichhold show that National Uniob eventually paid morethan $19.5 millionm to help satisfy the A second, similar case filec by Glasslam against Reichhols was settled for an undisclosed amount in December 2005.
That complainy claimed that Glasslam had suffered additionapl damages of morethan $15 million. Reichhold was joined as a third-parthy defendant by Glasslam in Januaryg 2006 in another lawsuit originally filed against Glasslan by one of its customersnamed Jeld-Wen Inc. That which sought millions morein damages, containede allegations against Reichhold that were similar to thosse in the first two cases. The second Glasslam-Reichhold lawsuit and the Jeld-Wemn lawsuit are the underlyinf lawsuits that are the subjec t ofNational Union's complaint. Reichhold, whicj was founded in 1927, has more than 1,500 employees.