Fortitude Re, AIG Urge Ky. Federal Judge to Bifurcate Coverage, Bad Faith Claims

PADUCAH, Ky. — Fortitude Reinsurance Company Ltd. and American International Specialty Lines Insurance Co. are urging a Kentucky federal judge to bifurcate coverage and bad faith claims asserted by CC Metals & Allows LLC (CCMA) in a pollution coverage action, and stay discovery on the bad faith claims until the coverage claims are resolved.

In a March 17 reply, Fortitude Re and AISLIC argue that the law in the district states that courts should bifurcate and stay discovery on bad faith claims in insurance disputes to promote judicial economy, prevent prejudice to insurers, and avoid juror confusion.

CCMA produces and …