AAIC Settles Coverage Suit With Calif. Water District

Law360, New York (October 25, 2010, 2:25 PM EDT) -- American Alternative Insurance Corp. has settled a coverage dispute with a bankrupt California water district by making good on a promise to defend it through the resolution of underlying allegations that it cost taxpayers $150 million by mismanaging a water purification project.

Judge A. Howard Matz signed a dismissal order Friday in the U.S. District Court for the Central District of California after parties agreed that AAIC had fulfilled its obligation by defending the water district, Los Osos Community Service District, through the underlying state court...
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