LA Demands FCA Defense Costs From AIG Affiliate

Law360, New York (August 6, 2012, 6:32 PM EDT) -- The city of Los Angeles hit an American International Group Inc. affiliate with a breach of insurance contract suit Friday, arguing that the insurer had a duty to defend the city in a False Claims Act case that was eventually dismissed.

National Union Fire Insurance Co. of Pittsburgh, Pa., was obligated under a 2001 policy agreement to defend Los Angeles against “any claim alleging a wrongful act,” according to the city. Yet, the insurer is still refusing to reimburse the city for a decadelong legal fight...
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