Pine Bluff Loses In Ice Storm Suit
By: Import User
Updated: January 7, 2009
A federal appeals court ruled today that the
city of Pine Bluff must cover its insurer`s losses in a dispute
over a city cleanup project after December 2000 ice storms.
Pennsylvania National Mutual Casualty Insurance Company, which
provided a surety bond for the city, filed the appeal, saying it
should be able to recover its losses after the city and David
Mitchell Construction Company settled a dispute over the project
without Penn National`s knowledge.
The Eighth U-S Circuit Court of Appeals agreed, saying also that
the city didn`t have immunity from being sued under these
circumstances.
The city must reimburse Penn National for losses incurred when
the city paid the Payne, Ala.-based Mitchell company. Penn National
had requested that funds be withheld pending an investigation, the
panel said.
Posted by Mike Hellgren
