FAA Can't Dodge $45M Deadly Bagram Crash Coverage Suit

Law360, New York (June 27, 2014, 7:50 PM EDT) -- A U.S. Court of Federal Claims judge said on Thursday that the Federal Aviation Administration can’t escape an American International Group Inc. unit’s $45 million lawsuit demanding insurance coverage for a cargo plane crash in Afghanistan that killed seven Americans.

The lawsuit accuses the FAA of breaching an insurance contract with U.S. Department of Defense contractor National Air Cargo Group Inc. by refusing to cover the April 2013 crash. AIG unit Commerce and Industry Insurance Co. ultimately paid about $42 million in insurance for the accident under a separate policy, but the suit says the FAA should have stepped up under...

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