AIG Unit Again Faces Bad Faith Claim In $69M Wildfire Row

Law360, Chicago (August 13, 2013, 3:50 PM EDT) -- A California federal judge on Friday reversed a colleague’s decision to toss a bad faith claim against an American International Group Inc. unit contesting coverage of a $69 million award in lawsuits that blamed a water district for property damage from a 2008 wildfire.

In March, the AIG unit — the Insurance Co. of the State of Pennsylvania — had won summary judgment against plaintiff Yorba Linda Water District’s claim for bad faith denial of coverage in the case. The federal judge that made that decision has...
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