Ky. Federal Judge Refuses to Dismiss Bad Faith Claim in Pollution Coverage Action

PADUCAH, Ky. — A Kentucky federal judge has refused to dismiss a policyholder’s bad faith and unfair settlement practices claims against Fortitude Reinsurance Company Ltd. and its cedent, AIG International Specialty Lines Insurance Co., in a pollution coverage action, ruling they were adequately pled.

In a Nov. 28 order, Judge Claria H. Boom of the U.S. District Court for the Western District of Kentucky also allowed CC Metals & Alloys LLC to proceed with its claim for a declaratory judgment on future costs, finding “there is a high probability that AIG will deny future claims for the same or similar …