AIG Unit Fights Bad Faith Claim Over Negligence Suit

Law360 (February 27, 2009, 12:00 AM EST) -- In a dispute over a steel worker's multimillion-dollar negligence award, National Union Fire Insurance Co. of Pittsburgh has asked a judge to rule that it is exempt from a bad faith claim filed by United States Fidelity and Guaranty Co., which claimed the other insurer squandered a chance to settle the negligence suit for a lower amount.

National Union, a member of American International Group Inc., filed a motion Thursday in the U.S. District Court for the Eastern District of Michigan requesting summary judgment against USF&G,...
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