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If the decision in the radium suit against the insurance companies is
won by the insurance companies, then Mr. Pesinger on behalf of his company stated
that his company would be unwilling to either defend or make any further contribu-
tions to any suit that may hereafter be brought. He further stated
that
if
any
suits should be brought from this time on, his company would feel that it ought not
to defend any of said suits pending the decision in the test case. However, with
respect to the other pending actions such as Madlinger and Metz, his company is
willing in those cases to continue with the defense and pay their proportionate
share of any sum that may be obtained by way of settlement or contest.
In the suit by the Radium Company against the insurance companies, but
two questions are to be litigated. First, whether or not there is any coverage
under the terms of the policy; and second, if so, what proportion of the amount of
the settlement should be borne by each company.
All other questions are to be
eliminated from the litigation.
In the meantime and for the purpose of permitting the Radium Company to
work out its ultimate destination, Mr. Pesinger stated that he was agreeable to la
settlement of the Saxer case for an amount not exceeding $8000. and likewise a
settlement of the Stasi case for an amount not exceeding $8000. In short, if in
those cases the Radium Company should settle for an amount up to $8000. and the
Radium Company should eventually win the test case against the insurance companies,
he would be willing to pay the proportionate shre of his company of those amounts
in those cases even though they are not now in suit and even though he is unwilling
at this time to recognize those cases as covered by the terms of his policy, and
even though he is unwilling at this time to give a defense in these cases for fear
that such a defense might work a waiver of his reservation of coverage.
It is my understanding that Mr. Emory is agreeable to the plan of Mr.
Pesinger.
It is my further understanding that Mr. Gray is not agreeable to that
plan and that he will take the matter up with iis company for the purpose of determ-
ining exactly what its position is with respect to settlement of the Tuck case for
$8000. Also, what the position of his company is with respect to the other
pending cases as well as with respect to the cases wherein only claims have been
made and in which no action has been instituted.
This matter should receive your very prompt attention because I met
Mr. Weeks, attorney for Mrs. Tuck this morning and he stated that unless the Tuck
case was settled by the end of this week, that all negotiations would be off,
because then he would be going to the expense of preparing for trial and he would
not be able to settle for $8000.
Yours very truly,
(signed) Collins & Corbin
EAM; AG
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"ocrText": "-2-\nIf the decision in the radium suit against the insurance companies is\nwon by the insurance companies, then Mr. Pesinger on behalf of his company stated\nthat his company would be unwilling to either defend or make any further contribu-\ntions to any suit that may hereafter be brought. He further stated\nthat\nif\nany\nsuits should be brought from this time on, his company would feel that it ought not\nto defend any of said suits pending the decision in the test case. However, with\nrespect to the other pending actions such as Madlinger and Metz, his company is\nwilling in those cases to continue with the defense and pay their proportionate\nshare of any sum that may be obtained by way of settlement or contest.\nIn the suit by the Radium Company against the insurance companies, but\ntwo questions are to be litigated. First, whether or not there is any coverage\nunder the terms of the policy; and second, if so, what proportion of the amount of\nthe settlement should be borne by each company.\nAll other questions are to be\neliminated from the litigation.\nIn the meantime and for the purpose of permitting the Radium Company to\nwork out its ultimate destination, Mr. Pesinger stated that he was agreeable to la\nsettlement of the Saxer case for an amount not exceeding $8000. and likewise a\nsettlement of the Stasi case for an amount not exceeding $8000. In short, if in\nthose cases the Radium Company should settle for an amount up to $8000. and the\nRadium Company should eventually win the test case against the insurance companies,\nhe would be willing to pay the proportionate shre of his company of those amounts\nin those cases even though they are not now in suit and even though he is unwilling\nat this time to recognize those cases as covered by the terms of his policy, and\neven though he is unwilling at this time to give a defense in these cases for fear\nthat such a defense might work a waiver of his reservation of coverage.\nIt is my understanding that Mr. Emory is agreeable to the plan of Mr.\nPesinger.\nIt is my further understanding that Mr. Gray is not agreeable to that\nplan and that he will take the matter up with iis company for the purpose of determ-\nining exactly what its position is with respect to settlement of the Tuck case for\n$8000. Also, what the position of his company is with respect to the other\npending cases as well as with respect to the cases wherein only claims have been\nmade and in which no action has been instituted.\nThis matter should receive your very prompt attention because I met\nMr. Weeks, attorney for Mrs. Tuck this morning and he stated that unless the Tuck\ncase was settled by the end of this week, that all negotiations would be off,\nbecause then he would be going to the expense of preparing for trial and he would\nnot be able to settle for $8000.\nYours very truly,\n(signed) Collins & Corbin\nEAM; AG"
}