Tuesday, October 14, 2008

AIG Sub to Pay San Diego $1.625M to Settle Claim

Lexington Insurance Co., a subsidiary of AIG, will pay the City of San Diego $ 1.625 million to settle a claim brought by the city to recoup lost revenues from a Chargers game that was canceled as a result of the 2003 wildfires.

According to the city attorney's office, San Diego officials determined the Oct. 27, 2003, Monday Night Football game between the San Diego Chargers and Miami Dolphins could not be played at Qualcomm Stadium because of ash and smoke, so the game was moved to Tempe, Arizona, which at the time was home to the Arizona Cardinals. As a result, the city lost out on about $500,000 from its cut of stadium sales, taxes and other revenues.

Following the fires, city officials filed a claim with Lexington Insurance Co. in an effort to recover some of the money. The claim was intially denied, so city officials sued the insurer in 2006 in an effort to recover the money.

Lexington Insurance recently said it would pay the city $1.625 million to close the lawsuit.

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