Lloyd’s Says DynCorp Covered Up Toxic Suits

WILMINGTON, Del. (CN) - Lloyd's of London claims DynCorp International defrauded it by failing to inform the insurer that DynCorp had been sued twice for injuring people by aerially spraying toxic chemicals on coca and poppy fields in South America on a contract with the Defense Department.

Lloyd's claims DynCorp sought, and received, rescission of the aerial spraying exclusion without informing Lloyd's of the lawsuits. Now Lloyd's faces four such lawsuits, it claims in Chancery Court.

Lloyd's says it faces four personal injury class actions in Miami Federal Court, from residents of Columbia and Ecuador. It claims DynCorp defrauded it in amending two insurance contracts and renewing two others. The class actions claim residents of the South American nations were injured by the spraying, which DynCorp has done for the Pentagon since 2000.

Dyncorp was sued for this in November and December 2006, and already had hired defense counsel when it asked that the aerial spraying exclusion be rescinded on Jan. 22, 2007, without informing Lloyd's of the already filed lawsuits, Lloyd's claims.

Lloyd's seeks rescission and cancellation of its policies with DynCorp. It is represented by Thaddeus Weaver with Christie, Pabarue & Mortensen.