Penford Wants $50M Summary Judgment Over Losses

Law360, New York (August 31, 2009, 3:44 PM EDT) -- Industrial-ingredient manufacturer Penford Corp. has asked a federal court to grant summary judgment in a $50 million flood insurance coverage suit, saying its insurers — which include a member company of American International Group Inc. — have misconstrued the policy language to duck their clear obligation to pay for economic losses at a Cedar Rapids, Iowa, plant damaged by June floods.

Though they have paid $20.5 million for direct physical damage, ACE American Insurance Co. and National Union Fire Insurance Co. of Pittsburgh still owe about...
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