A federal appeals court has upheld a lower court summary judgment in favor of U.S. International Group Inc. entities in policyholders' disputes over federal regulatory action against Waste Management Inc., an agreement with the city of Honolulu, following Friday's decision by the 5th U.S. Circuit Court of Appeals in New Orleans and Waste Management Inc .; Waste Management Hawaii, Inc. v. AIG Specialty Co., formerly known as Charts Specialty Insurance Co.
In late 2010 and early 2011, severe storms flooded part of the landfill and polluted water, which included medical waste such as syringes, blood bottles and catheters were released into the Pacific Ocean through an open well and washed up on nearby beaches, according to the decision .
After the Environmental Agency investigated, it issued an administrative consent decision in I January 201
In April 2011, the Ministry of Justice launched a grand jury investigation of the waste management measure and in April 2014 the company's Hawaii unit and two of its employees were charged with violating the provisions on "criminal penalties" in Clean. Water Act.
Under a basic agreement separate from any civil claims against the company, the defendants pleaded guilty to negligent discharge of pollutants in violation of the Clean Water Act. and the federal district court imposed a $ 400,000 fine, $ 200,000 in compensation to neighboring companies, and a $ 250 fine against the Hawaii entity.
Waste management included a consent decision to resolve the civil procedure against it in April 2019, according to the decision.
The AIG unit AIG Specialty had covered $ 50 million per incident with a deductible of $ 5 million. After the insurer refused to defend or reimburse the company, Waste Management filed a lawsuit in state court in Texas against AIG Specialty and AIG Claims Inc., which acted as AIG Specialty's adjuster. AIG successfully had the case transferred to the U.S. District Court in Houston, which granted AIG a summary judgment dismissing the case.
On appeal, a panel court with three judges confirmed the district court's refusal to refer the case to the state court and the lower court's decision dismisses the dispute.
On the issue of detention, the judgment stated: “Waste argues that it has sufficiently alleged that AIG claims violate the Texas Insurance Code. But "even assuming an adjuster can be held liable" under the Code, "Waste did not allege facts which, as true, show that they are in breach of those provisions."
"In particular, Waste did not claim that AIG claims to have failed to investigate, delayed any investigation, misjudged, misrepresented, misrepresented the policy or failed to" implement "a fair solution," the citation of a previous case stated. .
The ruling also contained "the district court did not err in finding that there was no allegation that triggered (AIG's) obligation to defend itself against the criminal charges," to confirm the lower court's rulings in the case.
An AIG Lawyer had no comment, and waste management lawyers did not respond to a request for comment.