Builder Says Insurer Claimed Arson To Dodge Payout

Law360, New York (November 2, 2010, 6:54 PM EDT) -- A Delaware construction company has accused Continental Casualty Co. of encouraging fire investigators to conclude that an insured building was destroyed by arson to escape its obligation to pay for reconstruction.

Pettinaro Enterprises LLC filed an amended complaint Friday in the U.S. District Court for the District of Delaware, adding bad faith claims to its existing suit against the insurer, which cited arson as one of its reasons for refusing a $3.6 million claim for fire damages in 2007.

Pettinaro sued Continental in January 2009, seeking...
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