Insurer Says Citgo Not Entitled To Pollution Defense Coverage

Law360, New York (May 30, 2012, 5:55 PM EDT) -- Westchester Fire Insurance Co. on Friday told a Texas judge it was not obligated to reimburse Citgo Petroleum Corp. for $26 million in legal fees it incurred in defending lawsuits that accuse the oil industry of contaminating the nation’s water supply.

In a response to Citgo's motion for summary judgment, the insurer claims the umbrella policy it provided to Citgo is only required to pay excess coverage in the event that the oil company’s primary insurance policies do not satisfy the underlying claims.

According to Westchester,...
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