Hawaii Gas Chain Sues AIG To Cover Climate Change Lawsuits

A Sunoco LP subsidiary said AIG breached insurance contracts by refusing to defend it in two Hawaiian government lawsuits alleging it contributed to climate change.

AIG’s insurance units shirked their duty to defend and indemnify Aloha Petroleum Ltd. in two actions that allege the gas company’s fossil fuel products cause climate change-related damages, Aloha told a Hawaiian federal court in a complaint filed Wednesday.

Aloha held liability insurance policies with AIG subsidiary National Union Fire Insurance Co. The carrier wrongly denied coverage by asserting a pollution exclusion, Aloha said.

“National Union has acted in a manner inconsistent with the terms ...