Pipeline Contractor Must Face AIG's Claims Over $25M Leak

Law360 (May 22, 2020, 9:25 PM EDT) -- A Georgia federal judge said that a pipeline maintenance company has to face AIG's third-party claims in a coverage dispute over a $25 million gasoline leak, finding that the maintenance company has a clear material interest in the outcome of the broader suit.

U.S. District Judge Michael L. Brown on Friday shot down a bid from maintenance company CECO Pipeline Services Co. Inc. to exit the suit filed by Colonial Pipeline Co. against its insurer, AIG Specialty Insurance Co.

AIG brought CECO into the suit with a third-party complaint, seeking declaratory judgment as to CECO's responsibility to cover damages in the...

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