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Arnstein & Lehr LLP Attorneys Obtain $42.5 Million Settlement Against Insurance Company in Litigation Involving Environmental Insurance Coverage

Posted on: Monday, 14 January 2008, 12:00 CST

Attorneys Thadford Felton, Katrina Christakis, Jeffrey Pilgrim and John Ropiquet of the Chicago law firm of Arnstein & Lehr LLP recently represented LePetomane II, Inc. as Successor Liquidation Trustee, and LePetomane III, Inc., as Custodial Trustee, (the "Trusts"), created pursuant to an environmental settlement agreement approved in the Fruit of the Loom, Inc. bankruptcy by the United States Bankruptcy Court, District of Delaware.

Arnstein & Lehr and the Trusts, working in concert with the federal government and numerous state governments, obtained a $42.5 million settlement for the Trusts against its insurance company, AIG, in litigation involving environmental insurance coverage.

The Trusts attempted to collect environmental cleanup costs for seven sites in Illinois, Michigan, New Jersey and Tennessee from AIG under an environmental insurance policy. The policy covered response costs and natural resource damages under the Comprehensive Environmental Response, Compensation and Liability, or Super Fund, Act. AIG denied coverage to the Trusts and the insurance company filed suit in federal court seeking to confirm that it was not obligated to pay the Trusts for the cleanup costs.

This settlement concludes litigation in which the United States Department of Justice intervened in the case on behalf of the Environmental Protection Agency, the Department of Interior, the Nuclear Regulatory Commission, and the National Oceanic and Atmospheric Administration. The states of New Jersey, Tennessee, Illinois and Michigan have also joined the settlement.

Under the settlement agreement, AIG will make an initial $30 million payment, plus interest, and ten annual payments of $1.25 million to the Trusts. Most of the funds will be used to clean up contamination at hazardous waste sites in Tennessee, New Jersey, and Michigan.

About Arnstein & Lehr LLP

Celebrating its 115th anniversary in 2008, Arnstein & Lehr LLP has served clients, large and small, throughout the United States and abroad. It is a full-service Firm with attorneys practicing in five main practice areas - Business, Litigation, Local Government, Tax and Estate Planning Services, and Real Estate. Arnstein has a diverse client base including large corporations listed on the public stock exchanges, middle market companies, nonprofit organizations and emerging businesses. Clients include governmental bodies, health care entities, financial institutions, trade associations, and a broad range of businesses in the retail, industrial, manufacturing, distribution, technology, and services sectors. The Firm also counsels individuals as to their personal needs, including estate planning, probate matters and the transfer of wealth and business interests from one generation to another. Arnstein & Lehr has offices in Illinois, Florida and Wisconsin. For additional information about the Firm visit www.arnstein.com.

Source: Business Wire

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