AIG, Gas Company Lock Horns in Hawaii Climate Change Dispute

An American International Group Inc. unit owes legal defense costs for climate change-related litigation against a Sunoco LP subsidiary because there’s at least a chance the claims are covered, the energy company told a Hawaii federal court.

The parties filed competing briefs on Jan. 24 in the US District Court for the District of Hawaii on unresolved motions concerning the insurer’s duty to defend Aloha Petroleum Ltd.

The filings mark the latest development in a landmark dispute over coverage for suits against Aloha alleging greenhouse gas emissions from its fossil fuel products caused climate change-related damages.

Hawaii’s high court ruled ...