Apex Oil sues insurer claiming it refuses to defend asbestos suit

A corporation has filed suit against the insurance company that it claims refuses to defend it in an asbestos lawsuit.

Apex Oil Company claims Mary M. Krohn filed an asbestos lawsuit against plaintiff Apex on Aug. 4, 2010, in Madison County Circuit Court. She filed the lawsuit on behalf of her recently deceased husband, Richard A. Krohn, who had worked for Clark (Oil) from 1957 until 1996.

Later, Apex bought Clark. Mary Krohn named Apex as a defendant in her asbestos lawsuit, saying the company is liable for her husband’s damages, according to the current complaint filed Dec. 3 in Madison County Circuit Court.

In turn, Apex requested that Arrowhead pay for the defense costs it incurred in defending Krohn’s lawsuit, the suit states. Arrowhead had issued workers’ compensation insurance to Clark at the time that Richard Krohn worked for the company, the complaint says.

“As Clark was an insured under the policies set forth … and the Krohn suit was within the coverage provisions of the aforementioned policies, Arrowhead had a duty to defend and indemnify Apex under the Workers’ Compensation Insurance Policies,” the suit states.

However, Arrowhead has refused to pay Apex’s defense costs, it claims.

In its complaint, Apex is seeking an award for the amounts it incurred in defending itself against the Krohn lawsuit, plus attorneys’ fees, pre- and post-judgment interest, costs and other relief the court deems just.

William J. Knapp and Heather Mueller-Jones of Knapp, Ohl and Green in Edwardsville will represent Apex.

Madison County Circuit Court case number: 12-L-1962.