Insurer Settles $87M Suit Over Hospital's Demise

Law360, New York (September 15, 2010, 6:28 PM EDT) -- American Guarantee and Liability Insurance Co. has settled an $87 million lawsuit alleging the insurer drove River West LP into liquidation by failing to cover the Louisiana medical center for extensive hurricane damage.

On Tuesday, Judge Brian Jackson of the U.S. District Court for the Middle District of Louisiana dismissed River West’s lawsuit upon notice that the insurer reached a deal with the trustee and liquidating agent for the defunct hospital.

The settlement remains confidential, and representatives for both River West and American Guarantee, a subsidiary...
To view the full article, register now.