AIG Unit Says It Wrongly Paid $1M For Oil Spill Cleanup

Law360, New York (March 11, 2010, 4:25 PM EST) -- An American International Group Inc. subsidiary has launched counterclaims in Sprague Energy Corp.'s suit seeking insurance coverage for an oil spill cleanup, claiming that it has already wrongly shelled out over $1 million.

American Homes Assurance Co. filed its counterclaims in the U.S. District Court for the District of Connecticut on Wednesday, alleging that the energy supplier failed to advise AIG that it had another insurance policy from Liberty Surplus Insurance Corp. to cover the cleanup.

The dispute centers on cleanup costs for a 30,000-gallon oil...
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