Wegman Can't Proceed On $2M Admiral Coverage Suit: 7th Circ.

By Eric Hornbeck (July 19, 2012, 5:14 PM EDT) -- R.C. Wegman Construction Co. can't proceed with its suit against primary insurer Admiral Insurance Co. until a resolution has been reached in Wegman's suit against excess insurer American International Group Inc. over the same underlying worker injury action, the Seventh Circuit said Thursday.

The Seventh Circuit rejected Admiral's bid to lift a stay on its lawsuit accusing Admiral of not having given it enough notice of coverage shortfalls in the worker injury suit. The only way an interlocutory decision like a stay could be appealed at all is if it were rendered moot by the state court's decision in the AIG...

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