AIG Need Not Cover Developer's $14M Blunder, 9th Circ. Says

Law360, New York (June 18, 2013, 7:17 PM EDT) -- The Ninth Circuit on Tuesday freed an American International Group Inc. excess insurer from covering the bulk of a $14 million arbitration award against a real estate developer over botched construction of a bar in downtown Los Angeles.

The appeals court upheld a ruling that The Insurance Co. of the State of Pennsylvania did not breach a contract by refusing to cover the award against real estate developer Barry Shy and his company Manhattan Loft LLC.

It found that ICSOP was not obligated to chip in...
To view the full article, register now.