British insurer Royal & SunAlliance (R&SA) is being sued by General Motors to recoup payment for all legal claims arising from asbestos-related lawsuits, along with additional damages.

R&SA’s US unit has filed for a declaratory judgement that it is not duty bound to defend or indemnify General Motors from asbestos-related claims. But GM says R&SA breached its contract and failed to pay legal liabilities where personal injury and property damage occurred through asbestos exposure.

The cancer-causing substance was used in vehicle brakes.

The General Motors annual report of March 2004 indicated that the cost of recent settlements in asbestos-related lawsuits has risen in recent years. The company has paid millions of dollars in premiums over the years, and there is a strong possibility of huge liabilities to come.