AIG Units Secure Expected Win in Climate Change Coverage Dispute

Two American International Group Inc. units can avoid paying a Sunoco LP subsidiary’s legal costs in climate change-related litigation under at least 10 policies that contained pollution exclusions, a Hawaii federal court ruled.

The exclusions in the policies issued by National Union Fire Insurance Co. of Pittsburgh, Pa. and American Home Assurance Co. unequivocally barred coverage for Aloha Petroleum Ltd.'s defense costs in the underlying suits, Judge Jill A. Otake of the US District Court for the District of Hawaii said in a Dec. 27 order.

Those suits were brought by multiple local Hawaiian governments alleging gas emissions related to ...