AIG Unit Loses Bid for Early Win in Restaurant Franchise Dispute

An American International Group Inc. unit must continue to make its case that a directors and officers liability policy issued to a California restaurant franchisor barred coverage for arbitration proceedings.

Exclusions for contracts, professional services, and intentional acts didn’t bar insurance coverage, but an exclusion for prior notice might, the US District Court for the District of New Hampshire said in a Nov. 1 order. The court denied Stratford Insurance Co.'s motion for summary judgment and granted partial summary judgment to MRFranchise Inc., which operators as a franchisor of the Panini Kabob Grill, a restaurant chain in Southern California.

The ...