Insurers Drop Suit Over Hotel Sinkhole Damage

Law360, New York (April 8, 2011, 7:42 PM EDT) -- Two FCCI Insurance Group units on Friday withdrew a lawsuit seeking to avoid covering a construction company in underlying breach-of-contract litigation over sinkhole-related damages to a hotel in Alabama.

Judge Charles R. Simpson III of the U.S. District Court for the Western District of Kentucky granted a voluntarily motion to dismiss by FCCI Insurance Co. and National Trust Insurance Co. The companies moved April 4 to withdraw the suit.

The allegations stememd from Fidelity International Contractors Inc.'s work on the construction of two hotels in Tuscaloosa,...
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