Insurers Want $20M For Allegedly Defective Power Pipes

Law360, New York (May 3, 2011, 2:21 PM EDT) -- Insurers of New England’s largest public utility accused manufacturer The Babcock & Wilcox Co. in Connecticut on Monday of selling the utility defective tubing that caused more than $20 million in damage to a coal-fired power plant.

Associated Electric & Gas Insurance Services Ltd., Energy Insurance Mutual Ltd. and Zurich American Insurance Co. allege Babcock & Wilcox’s secondary superheater pendant tube system contained debris that damaged a Northeast Utilities System plant’s steam turbine and other parts after installation.

The insurers claim that when Northeast Utilities bought...
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