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Exxon Insurer TIG Freed from Paying $8 Million Interest on Award

Aug. 12, 2022, 6:16 PM

A Fairfax Financial Holdings Ltd. insurance unit escaped paying ExxonMobil Corp. $8 million in interest on top of $25 million in coverage stemming from gas contamination claims, the Second Circuit said, reversing a lower court.

A federal court in New York awarded Exxon the full $25 million available under its policy with TIG Insurance Co., plus 9% interest beginning from the day TIG first denied coverage of claims arising from lawsuits against Exxon for allegedly contaminating groundwater with a gasoline additive.

But the US Court of Appeals for the Second Circuit found that the contract between Exxon and TIG covering ...