Lloyd's of London Underwriters has lost its move for home-court advantage in an insurance dispute with Thiokol Corp, the maker of rocket motors.
"Lloyd's wanted the case heard on its own turf," said Mary Anne Wood, a Salt Lake attorney representing Ogden-based Thiokol. "Cases tend to go favorably for them in London."Thiokol is trying to collect nearly $3.7 million from Lloyd's on an insurance policy that was purchased to protect the Utah company in case NASA canceled a project to develop a new launch system for commercial satellites.
The program, called the Commercial Experiment Transporter, or COMET, was canceled, but Lloyd's has refused to pay, according to Thiokol.
In response to a U.S. District Court lawsuit filed last year in which Thiokol sought to collect the money, Lloyd's asked Judge Dee Benson to rule that the dispute should be sent to London for arbitration.
Lloyd's argued an arbitration clause in the contract required a hearing in London. Thiokol said another provision gave it the right to bypass arbitration and bring suit in the United States.
Benson ruled language in the insurance contract favored Thiokol's interpretation.