FOLLOW US

Sun

August 29, 2026

America April 16, 2024 3 mins read

AIG Unit Must Cover $20M Botched Tunnel Project

America ı By Rihem Akkouche

0 Comments

AIG Unit Must Cover $20M Botched Tunnel Project

A fierce legal battle ensues as a Michigan county's water authority takes on an AIG unit over a staggering $20 million claim concerning a botched tunnel project, thrusting the parties into a labyrinth of legal complexities and contentious arbitration demands.

AIG Unit Must Cover $20M Botched Tunnel Project : Claiming Negligence

Oakland County Water Resources Commissioner Jim Nash, along with the Evergreen-Farmington Sewage Disposal System (EFSDS), unleash their legal arsenal, accusing Lexington Insurance Co., a unit of AIG, of shirking their responsibilities in handling coverage claims related to a tunnel project marred by the ineptitude of a design contractor. The plaintiffs assert enduring damages exceeding $20 million due to the contractor's faulty workmanship.

Elusive Resolution

Despite diligently keeping Lexington informed of project developments and meticulously fulfilling their policy obligations, Nash and EFSDS lament Lexington's reluctance to honor their end of the professional liability policy. Despite numerous pleas for additional information, the insurer remains obstinate, prompting the plaintiffs to invoke arbitration mandates stipulated under both Michigan's Uniform Arbitration Act and the Federal Arbitration Act.

AIG Unit Must Cover $20M Botched Tunnel Project : Dispute Origins

At the heart of the coverage dispute lies the questionable performance of design contractor Wade Trim Assoc. Inc. on the "Middlebelt Transport & Storage Tunnel" project. The policy issued by Lexington explicitly identifies Wade Trim as a "design professional," obligating the insurer to indemnify insured parties against claims arising from the design professional's breaches of duty during project execution.

Legal Wrangling

Since March 2016, correspondence between Lexington and the plaintiffs has ensued, yet a resolution remains elusive. Despite entering a "dispute management agreement" in 2022, Lexington's promises of a comprehensive claim analysis and subsequent negotiations have yet to materialize. Allegations of unfulfilled requests for information and delayed responses further exacerbate tensions between the parties.

AIG Unit Must Cover $20M Botched Tunnel Project : Breach of Policy

In addition to pressing for arbitration, the plaintiffs accuse Lexington of breaching their policy obligations, adding another layer of contention to an already convoluted legal saga.

Federal Intervention

Lexington, in a bid to maneuver the dispute, asserts the necessity of transferring the case to federal court, citing complete diversity among the parties and the substantial damages exceeding the $75,000 threshold for federal disputes.

Awaiting Response

As the legal skirmish intensifies, representatives from both sides remain tight-lipped, withholding commentary on the unfolding legal drama.

AIG Unit Must Cover $20M Botched Tunnel Project : Legal Eagles

Jeffrey M. Sangster and R. Edward Boucher of Kotz Sangster Wysocki PC represent the plaintiffs, while Lexington is defended by Kevin Yombor of Kaufman Dolowich LLP.

In a clash of legal titans, the battle for justice rages on, leaving stakeholders and spectators alike on the edge of their seats, awaiting the next twist in this gripping courtroom saga.

Previous Article

High Court Sides With Texas Landowners In Takings Dispute

Read More
4537 Posts

Rihem Akkouche

Rihem Akkouche is a passionate journalist dedicated to shedding light on compelling stories, sparking conversations, and fostering a more informed world.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
America August 28, 2026
Federal Judge Torches Pentagon’s ‘National Security’…

The Verdict, Distilled A California federal judge has ruled that…

By – Samuel Lopez
America August 28, 2026
Why the Tate Brothers’ Isolation in…

The Record at a Glance Andrew and Tristan Tate have…

By – Samuel Lopez
America August 28, 2026
Stars and Stripes Staff Sue Pentagon…

WASHINGTON — A Stars and Stripes lawsuit filed Thursday asks…

By – Michallie Harrison
America August 28, 2026
Chris Hansen Considers Legal Action Against…

By Samuel López | USA Herald Chris Hansen built his…

By – Samuel Lopez
America August 28, 2026
Floyd Mayweather Launches Law Firm While…

By Samuel López | USA Herald Floyd Mayweather built an…

By – Samuel Lopez
America August 27, 2026
California School Bus Chaos Erupts as…

California school bus chaos resulted when angry parents confronted a…

By – Jackie Allen
America August 27, 2026
California School Bus Chaos Erupts as…

California school bus chaos resulted when angry parents confronted a…

By – Jackie Allen
America August 27, 2026
Canada Rejects Trump’s ‘Lake America’ Renaming

WASHINGTON — President Donald Trump signed an order Thursday renaming…

By – Michallie Harrison
America August 27, 2026
Louisiana Dividends Payments From State Farm…

Money is starting to flow back the other way for…

By – Rihem Akkouche
America August 27, 2026
Astrum Space to Go Public in…

Satellite communications company Astrum Space Inc. is trading its private…

By – Rihem Akkouche
America August 27, 2026
NYC Accidents Staging Scheme Ends in…

Highway crashes are supposed to be accidents. For two men…

By – Rihem Akkouche
America August 27, 2026
Blueshield Downcoding Practice Threatens Patient Access…

A single word — downcoding — has quietly upended how…

By – Rihem Akkouche
America August 27, 2026
Shocking Ruling Denies Navy Rape Lawsuit…

NEWARK, N.J. — A civilian Navy engineer who says her…

By – Michallie Harrison
America August 27, 2026
Killed in Kenya Helicopter Crash Had…

A Florida couple who were killed in Kenya in a…

By – Jackie Allen
America August 26, 2026
Tupac Shakur Murder Trial Moves to…

The Tupac Shakur murder trial will resume Thursday in Las…

By – Jackie Allen
America August 25, 2026
Nazi Tank Buried Beneath Russian University…

A rare Nazi Tank has been discovered buried beneath a…

By – Jackie Allen
America August 25, 2026
Forensic Identification Breakthrough Helps Identify 9/11…

Nearly 25 years after the September 11, 2001, terrorist attacks,…

By – Jackie Allen
America August 25, 2026
Historic Spacewalks Mark a Turning Point…

Three spacewalks outside the International Space Station (ISS) this August…

By – Jackie Allen
America August 27, 2026
When Your Chatbot Becomes the Star…

Legal Analysis: How AI Conversations Are Reshaping the Rules of…

By – Samuel Lopez
America August 26, 2026
Avi Loeb’s Backyard Black Hole Theory…

Scientific Record Loeb correctly explains tidal forces and black-hole accretion,…

By – Samuel Lopez
America August 26, 2026
Instagram CEO Claims Ignorance With ‘News…

On the Record Instagram’s counsel directed employees to remove teen-harm…

By – Samuel Lopez
America August 26, 2026
Dolly Parton Planned Her $650 Million…

By Samuel López | USA Herald Dolly Parton spent her…

By – Samuel Lopez
America August 25, 2026
YouTube Offering Creators Millions to Stop…

A Legal and Business Analysis of the Platform War Reshaping…

By – Samuel Lopez
America August 25, 2026
Federal Judge Rejects RAW Trademark Time…

This report examines the facts behind BBK’s so-called “time bubble”…

By – Samuel Lopez
America August 16, 2026
Perez Hilton’s Mother Seeks Temporary Custody…

By Samuel López | USA Herald Perez Hilton’s family has…

By – Samuel Lopez
America August 13, 2026
Taylor Farms Jalapeño Recall Salmonella Scare…

A single shipment of peppers has set off a chain…

By – Rihem Akkouche
America August 12, 2026
Heat Dome Brings Dangerous Temperatures Across…

A powerful Heat dome is expanding across the United States,…

By – Jackie Allen
America August 8, 2026
Joe Biden: Hunter Says the Prostate…

Former President Joe Biden is experiencing a worsening battle with…

By – Jackie Allen
America August 1, 2026
Stormed the Border: Spain Says 25,000…

CEUTA, Spain (AP) — Spanish authorities say thousands of migrants…

By – Jackie Allen
Breaking News July 29, 2026
Trump Ends Medicare Part D Subsidy,…

The Trump administration is ending a Medicare Part D subsidy…

By – Michallie Harrison
America August 21, 2026
World Cup Brawl Leads to Major…

EAST RUTHERFORD, N.J. — The World Cup final between Spain…

By – Jackie Allen
America August 17, 2026
Von Miller Cowboys Contract Brings Future…

Some homecomings happen quietly. This one came with a social…

By – Rihem Akkouche
America August 14, 2026
White House Denies Role in Josh…

LOS ANGELES — The White House is denying any role…

By – Michallie Harrison
America August 13, 2026
Prichard Colon Death: Once-Unbeaten Boxer Dies…

Prichard Colon never threw another punch after that October night…

By – Rihem Akkouche
America August 13, 2026
Tiger Woods and Nike: 27-Year Partnership…

Tiger Woods built one of the most lucrative athlete-brand partnerships…

By – Jackie Allen
America August 12, 2026
209 Triple-Doubles, Two Offers Declined: Russell…

There were two NBA teams ready to hand Russell Westbrook…

By – Rihem Akkouche

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter