Insurance Giants Fail to Escape Pollution Coverage Suit Involving Bad Faith Claims

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Metals & Alloys

Case:

This is the case of CC Metals & Alloys, LLC v. American International Specialty Lines Insurance Company et al.

Court:

In the U.S. District Court for the Western District of Kentucky.

Summary:

The Plaintiff, CC Metals & Alloys filed an insurance coverage lawsuit in Kentucky Western District Court.

The suit, against American International Specialty Lines Insurance Company, a unit of the AIG, and Fortitude Reinsurance Company Ltd., accused the defendants of “abruptly changing” a nearly two decades old coverage position relating to pollution clean-up costs, which CC Metals & Alloys said was done in bad faith.

The Plaintiff sought a declaratory judgment against the insurers and full coverage under an existing pollution legal liability select clean-up cost cap policy.

Case Background:

CC Metals and Alloys (CCMA) is one of the biggest North American producers of silicon-containing ferroalloys and inoculants. Its alloys are typically used to produce a number of products, including bathtubs, sinks, and other bath fixtures; automobile parts, welding rods, tractor parts, and lawnmowers.