ACE, AIG Unit Must Cover Business Interruption, Judge Says

Law360, Chicago (October 1, 2012, 6:11 PM EDT) -- A Maryland federal judge ruled Friday that an American International Group Inc. unit and ACE American Insurance Co. must cover Millennium Inorganic Chemicals Ltd. for business interruption losses tied to a natural gas explosion, but rejected the pigment maker's allegation that the insurers acted in bad faith.

In a 51-page opinion granting Millennium partial summary judgment, U.S. District Judge Ellen Lipton Hollander found that the company, a leading producer of titanium dioxide, is entitled to contingent business interruption coverage under the policies issued by ACE and...
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