Honeywell Spin-off Garrett Motion Sues Over Asbestos Liability

Honeywell International Inc. saddled Garrett Motion Inc. with more than a billion dollars in legacy asbestos liabilities through an unlawful and unenforceable 30-year indemnification agreement in a 2018 spin-off from the industrial conglomerate, the company alleged.

The agreement purports to require Garrett to reimburse Honeywell for 90% of Honeywell’s legacy asbestos liability, according to a complaint filed Wednesday in a New York state trial court.

But the agreement also gives Honeywell a veto over Garrett’s key corporate decision-making for three decades, making Garrett “Honeywell’s asbestos piggybank,” the complaint alleged. The agreement is unlawful and so one-sided as to be manifestly ...