Sewage Board Claims Against Lexington Stay Alive

Law360, New York (October 28, 2010, 2:03 PM EDT) -- A federal judge has declined to throw out a New Orleans municipal body's claims that Lexington Insurance Co. breached its duty of good faith when it denied coverage for third-party liability costs related to a $400 million deal with the federal government over raw sewage discharges into the Mississippi River and Lake Pontchartrain.

A dispute over whether the pollution occurred within the effective dates of coverage under a group general liability policy was not appropriate for summary judgment, Judge Jay C. Zainey ruled Tuesday in the...
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