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State Supreme Court rules in favor of utility insurers

Michael W.
May 1, 2007
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The Indiana Supreme Court said today that insurance carriers are not required to pay power utilities’ costs to install pollution equipment or to pay utilities’ legal costs to defend against lawsuits that forced them to upgrade air quality.

The 17-page, unanimous opinion upheld a decision by Hendricks Superior Judge David H. Coleman denying a motion by power companies Cinergy Corp. and Duke Energy Corp. that sought to force the insurers to pay their legal costs.

Cincinnati-based Cinergy, which was acquired by Duke in April 2006, supplies electricity to the Indianapolis area outside Marion County. Duke is headquartered in Charlotte, N.C.

The suit was a byproduct of a federal ruling in May 2006 that forced the utilities to cut emissions. That suit was brought by the federal government, three states and several environmental groups.

The 7th Circuit Court of Appeals in Chicago upheld the federal ruling last year, and the U.S. Supreme Court declined to hear the case in April after ruling in a similar case that utilities must install emission equipment.

Before the utilities lost the federal suit, a consortium of Associated Electric & Gas Insurance Services Ltd. and 19 other insurers sued in state court to determine their liabilities.

The utilities had said in the state suit that insurers were obligated to pay at least $4 million the power companies spent defending themselves in the Cinergy case—an amount exceeding the self-insured retention amount of up to $1 million.

The carriers contended the policies didn’t cover claims made against the power companies in the federal suit, and therefore had no duty to pay defense costs.

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  1. The east side does have potential...and I have always thought Washington Scare should become an outlet mall. Anyone remember how popular Eastgate was? Well, Indy has no outlet malls, we have to go to Edinburgh for the deep discounts and I don't understand why. Jim is right. We need a few good eastsiders interested in actually making some noise and trying to change the commerce, culture and stereotypes of the East side. Irvington is very progressive and making great strides, why can't the far east side ride on their coat tails to make some changes?

  2. Boston.com has an article from 2010 where they talk about how Interactions moved to Massachusetts in the year prior. http://www.boston.com/business/technology/innoeco/2010/07/interactions_banks_63_million.html The article includes a link back to that Inside Indiana Business press release I linked to earlier, snarkily noting, "Guess this 2006 plan to create 200-plus new jobs in Indiana didn't exactly work out."

  3. I live on the east side and I have read all your comments. a local paper just did an article on Washington square mall with just as many comments and concerns. I am not sure if they are still around, but there was an east side coalition with good intentions to do good things on the east side. And there is a facebook post that called my eastside indy with many old members of the eastside who voice concerns about the east side of the city. We need to come together and not just complain and moan, but come up with actual concrete solutions, because what Dal said is very very true- the eastside could be a goldmine in the right hands. But if anyone is going damn, and change things, it is us eastside residents

  4. Please go back re-read your economics text book and the fine print on the February 2014 CBO report. A minimum wage increase has never resulted in a net job loss...

  5. The GOP at the Statehouse is more interested in PR to keep their majority, than using it to get anything good actually done. The State continues its downward spiral.

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