Phillips 66's $44M Arbitration Win Against Insurer Upheld

Law360 (March 24, 2021, 6:32 PM EDT) -- The Second Circuit on Wednesday affirmed Phillips 66's $44 million arbitration award against German insurer HDI Global SE for coverage of settlements over a gasoline additive that polluted groundwater in multiple states.

The Second Circuit said U.S. District Judge Richard M. Berman didn't get it wrong by refusing to vacate the award based on an "end use" exception to a pollution exclusion, and that there wasn't anything legally insufficient in the arbitration panel's conclusion that "it would be 'unnecessary and impractical'" to require the petroleum giant's predecessor-in-interest, Tosco Corp., "to prove an end use that occurs out of its control and...

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