Insurer Off Hook In AES Global Warming Coverage Row

Law360, New York (September 16, 2011, 6:36 PM ET) -- The Virginia Supreme Court ruled Friday that Steadfast Insurance Co. didn’t owe power provider The AES Corp. coverage against claims that the company’s greenhouse gas emissions destroyed the Alaskan village of Kivalina by contributing to global warming.

In a unanimous opinion, the court ruled that the claims weren’t covered by AES’ policy with Steadfast because Kivalina alleged that the company intentionally released greenhouse gases and knew or should have known that they would damage the village.

Kivalina, a native fishing community, filed suit in federal court...
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