A Berkshire Hathaway unit is taking on some of the world’s biggest insurers, demanding more than $22 million in coverage after a bruising antitrust defeat.
Johns Manville Corporation, a Denver-based manufacturer and Berkshire Hathaway subsidiary, has filed suit in federal court against Liberty Mutual, Ironshore, Swiss Re, and Allianz, alleging the insurers refused to pay out on commercial liability policies after the company was hit with a substantial antitrust judgment. The complaint, filed September 10 in the US District Court for the District of Colorado, accuses the insurers of breach of contract, bad faith, and statutory violations under Colorado law.
At the heart of the dispute is a legal battle between Johns Manville and its competitor, Chase Manufacturing, Inc., which does business as Thermal Pipe Shields (TPS). TPS sued Johns Manville in 2019, alleging that Johns Manville and its subsidiary, Industrial Insulation Group, LLC (IIG), disparaged TPS’s calcium silicate insulation product - known as Calsil. The case went to trial in April 2024, with a jury ultimately finding Johns Manville Corporation liable on TPS’s antitrust claim. The jury awarded $6,784,042 in damages, later remitted to $6,149,090. Under federal antitrust law, those damages were trebled, bringing the total to $18,447,270. The court also ordered Johns Manville to pay TPS’s attorneys’ fees and costs, adding another $3,810,021.64, for a total judgment of $22,257,294.60.
Johns Manville states it promptly notified its insurers and sought coverage under a suite of commercial liability and umbrella policies, with coverage limits ranging from $1 million to $25 million per occurrence. According to the complaint, these policies provide coverage for “personal and advertising injury,” including the publication of material that “disparages a person’s or organization’s goods, products, or services.” The company alleges that the jury received and considered evidence of disparagement at trial, and that the resulting judgment is covered under the policies issued by the insurers.
Despite this, the insurers allegedly refused to pay. The complaint details how Liberty Mutual, Ironshore, Swiss Re, and Allianz all denied coverage, leaving Johns Manville to resolve the TPS matter and fund the settlement on its own. Johns Manville claims that Liberty Mutual, as the primary insurer, failed to request a special verdict form at trial that could have clarified the jury’s findings on disparagement—an omission the company says contributed to the coverage dispute. The complaint also accuses Liberty Mutual of delaying payment to expert witnesses, including a $1,404,825.02 invoice for Compass Lexecon, which remained unpaid in full more than a year after approval.
Johns Manville alleges that the insurers’ refusal to pay was not only a breach of contract, but also constituted bad faith and violated Colorado statutes prohibiting unreasonable delay or denial of insurance benefits. The company seeks actual and statutory damages, attorneys’ fees, and a declaration from the court that the insurers must cover the TPS judgment.
The case highlights the complexities of commercial insurance coverage disputes, especially when multiple insurers and a large corporate policyholder are involved. For insurance professionals, the dispute underscores the importance of policy wording, claims handling, and the risks of failing to settle or pay out on large, complex claims.
As of now, the lawsuit remains at the complaint stage, and all allegations are unproven. The outcome could have significant implications for how insurers handle claims involving “personal and advertising injury” and their obligations to defend and indemnify clients facing major litigation.
