Punitive Damages Claim Survives In AIG Coverage Suit

Law360, New York (October 7, 2009, 4:55 PM EDT) -- A judge has ruled that Wyle Laboratories Inc. can proceed in its quest for punitive damages in a lawsuit alleging an American International Group Inc. subsidiary unreasonably denied a claim following the failure of a geotechnical centrifuge.

In an order Tuesday, Judge Margaret M. Morrow of the U.S. District Court for the Central District of California said she couldn't rule on whether punitive damages should be available because she couldn't yet assess the reasonableness of American Home Assurance Co.'s coverage decision.

The dispute centers on Wyle's...
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