Contractor Sues AIG Unit Over Defense Of $44M Suit

Law360, New York (May 20, 2011, 9:04 PM EDT) -- A general contractor for a Texas hospital on Friday sued its insurer, an American International Group Inc. unit, for refusing to pay its defense in a $44 million suit over shoddy construction.

J.E. Dunn Construction Co. and fellow plaintiff Arch Insurance Co., which stepped up to cover the construction company's defense costs, say National Union Fire Insurance Co. of Pittsburgh, Pa., must pay its share of Dunn's defense of a lawsuit from the hospital owner's general partner, IASIS Healthcare Holdings Inc. That suit had claimed damages...
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