Allianz Must Pay Logistics Company’s Settlement in Pollution Row

An Allianz SE unit must pay to settle a pollution claim against a trucking logistics firm after it failed in bad faith to defend the company, a Washington federal court ruled.

The underlying settlement—consisting of $350,000 and attorneys’ fees—can serve as the measure of damages owed by Allianz unit Fireman’s Fund Indemnity Corp. on KAG West LLC’s bad-faith claim, the US District Court for the Western District of Washington said in a Tuesday ruling.

The Puget Soundkeeper Alliance sued KAG in 2023, alleging that its Tacoma, Wash., facility discharged stormwater with pollutants into waterways. KAG sought coverage for the suit ...