Exxon Mobil Insurer TIG Must Pay $25 Million for MTBE Litigation

Exxon Mobil Corp. will receive a $25 million payout from TIG Insurance Co. for contamination claims from the gas additive MTBE after the Southern District of New York found the insurer has a duty under a policy provision providing coverage for leaks from the “end use” of Exxon Mobil products.

Affirming a federal arbitrator’s ruling, the U.S. District Court for the Southern District of New York said a provision in the policy barring coverage for the release of pollutants doesn’t preclude coverage.

The court also found Exxon Mobil is entitled to nine percent annual pre-judgment interest from the date TIG ...