Fraud Claims Against AIG Are Time-Barred, Court Rules

PHILADELPHIA - Fraudulent inducement claims brought by AXA Versicherung AG relating to a $10 million reinsurance facility are time-barred, a federal appeals court has ruled, reversing a $34.4 million judgment against American International Group. AXA Versicherung AG v. New Hampshire Insurance Co., et al., No. 08-2521 (2nd Cir.).

On Aug. 23, the 2nd Circuit U.S. Court of Appeals agreed with a finding by the U.S. District Court for the Eastern District of Pennsylvania that the claims sound in fraud and are therefore not arbitrable. But the appellate court then found that AXA's duty of inquiry arose as early as 1998 …