Appalachia

The Charleston Gazette
Tuesday, July 22, 2014
Freedom executives want legal costs paid
By Ken Ward Jr., Staff writer

CHARLESTON, W.Va. — The nearly $3 million settlement Freedom Industries has reached with its insurance company has hit a potential snag, as former officers of the bankrupt company try to force that insurer, AIG Specialty, to pay their personal legal costs in any civil litigation filed over Freedom’s January chemical leak.

Former Freedom officers Dennis Farrell, Charles Herzing and William Tis filed formal objections to the insurance settlement that lawyers for area residents and businesses are hoping will fund a separate proposed settlement that could help perform additional water testing, health impacts studies or other projects to benefit those harmed by the leak.

The three men argue that Freedom’s settlement with AIG would wrongly allow the insurance company to avoid paying the costs of a reasonable legal defense, while Freedom and AIG say the leak wasn’t covered by the section of Freedom’s policy that provides company officers with insurer-funded attorneys.

At the request of Freedom lawyer Mark Freedlander, U.S. Bankruptcy Judge Ronald Pearson gave the various sides 10 days to work out an arrangement, but said if that doesn’t happen he wanted more legal briefs on the matter to help him make a decision....

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