AIG Unit Sued by Waste Management Company Over Pollution Cases

A waste management company sued its insurer for refusing to defend it in multiple pollution lawsuits, claiming the American International Group Inc. unit breached its duty to provide legal defense under pollution liability policies.

AIG Specialty Insurance Co. wrongfully denied coverage for several related environmental lawsuits against Arakelian Enterprises Inc., doing business as Athens Services, stemming from land application practices in California’s Antelope Valley region, according to a complaint Tuesday in the US District Court for the Central District of California.

Athens says it deposited green waste materials on private properties as part of an environmentally approved disposal method but ...