La. Federal Court Declines to Dismiss Insurer’s Bid to Enforce Environmental Claims Settlement

NEW ORLEANS — A federal judge has denied a motion to dismiss United States Fire Insurance Co.’s (NASDAQ: UFCS) suit to enforce a 2009 settlement of a contribution claim arising from alleged environmental injuries suffered by workers and neighbors of a New Orleans landfill.

Judge Martin L.C. Feldman, who noted that the underlying state court litigation is still ongoing, said Jan. 11 that the tests for abstention are inconclusive, leading the court to conclude that it should exercise its jurisdiction in this case.

U.S. Fire contends that the 2009 confidential settlement of its contribution claim against the Housing Authority of …