Garrett Motion is suing Honeywell International Inc. — the company from which Garrett spun off in 2018 — for an "unusual" agreement between the two that has pinned the responsibility of massive asbestos liability claims against Honeywell onto Garrett.
In a suit filed in New York Supreme Court on Dec. 2, Switzerland-based Garrett alleges Honeywell "unilaterally" imposed a 30-year indemnification agreement on Garrett. Garrett says the agreement forces it to compensate Honeywell for all ongoing claims of asbestos exposure against the company that go back several decades.
Garrett also filed a complaint from the December lawsuit on Wednesday, detailing "how Honeywell and its executives, and not Garrett's current management, devised Garrett's spinoff to offload Honeywell's more than $1 billion legacy Bendix asbestos liability, while saddling Garrett with unconscionable and illegal covenants that unnecessarily limit its ability to control its long-term future," according to a Garrett statement.
As of September 30, Honeywell carried a total of $2.44 billion in asbestos liabilities with $6.4 billion in total unresolved claims, according to the company's third-quarter filing.
Garrett has paid Honeywell $193 million as "required" by the agreement, but believes the asbestos liability belongs to Honeywell, Garrett spokesman Michael Stoller told Automotive News in a statement.