Ky. Insured Opposes Reinsurer's Efforts to Bifurcate Coverage, Bad Faith Claims

PADUCAH, Ky. — An insured has opposed a motion by Fortitude Reinsurance Company Ltd. and American International Specialty Lines Insurance Co. to bifurcate coverage and bad faith claims in a Kentucky federal pollution coverage action, arguing they are “inextricably entwined."

In a March 10 opposition filed in the U.S. District Court for the Western District of Kentucky, CC Metals & Alloys LLC (CCMA) argues that bifurcation and a stay of the bad faith claims would serve no purpose.

To prove the existence of coverage, the policy requires that defendants’ “consent to reasonable and necessary costs shall not be unreasonably …