Insurer Sues Cascade Over Contaminated Ethanol

Law360, New York (January 26, 2011, 5:52 PM EST) -- American International Specialty Lines Insurance Co. is demanding $4 million from Cascade Grain Products LLC on behalf of policyholder Eco-Energy Inc. in a breach of contract dispute over a shipment of allegedly contaminated ethanol.

Cascade Grain negligently refined and sold contaminated ethanol to Eco-Energy which, when mixed with existing ethanol tanks owned by Chevron Corp. and ConocoPhillips Co., contaminated the entire contents of the tanks, according to the complaint filed in the U.S. District Court for the District of Oregon on Tuesday.

Eco Energy was insured...
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