Ga. Federal Judge Awards AIG Partial Summary Judgment in Gasoline Leak Coverage Action

ATLANTA — A Georgia federal judge has awarded AIG Specialty Insurance Co. partial summary judgment in an action in which the owner of a petroleum pipeline system is seeking coverage for a gasoline leak, ruling that a related lawsuit filed by the state of Alabama is not insured under the policy.

However, in a March 23 order, Judge Michael L. Brown of the U.S. District Court for the Northern District of Georgia found Colonial Pipeline Co. met the AIG policy’s $10 million self-insured retention.

In September 2016, Colonial discovered a gasoline leak in its petroleum pipeline system, causing it …