By: Mark Fitzgerald
The Tribune Co. says the Swiss Reinsurance America Corp. stuck it with an unpaid bill for more than $20 million in workers’ compensation claims against the old Times Mirror Co.
In a lawsuit filed in federal court in Chicago, Tribune said that just before it took over the Los Angeles-based chain in 2000, Times Mirror agreed to pay more than $65 million to the Reliance National Indemnity Co. to administer and settle claims dating back to 1977.
Reliance went into liquidation proceedings in October 2001, leaving Tribune with obligations “in excess of $20 million,” the lawsuit says. The Tribune lawsuit alleges Reliance “acted merely as a ‘front’ or ‘pass-through'” for Swiss Re, which has not paid the claims.
Spokesman Michael D. McNamara said Swiss Re does not comment on pending litigation as a matter of policy.