Great American seeks judicial oversight in Greenberg D&O dispute
Great American Insurance has asked for a judge to decide the outcome of a $15mn claim from a directors' and officers' (D&O) insurance policy that relates to an ongoing dispute with American International Group (AIG)'s former head, Maurice "Hank" Greenberg.
The dispute centres on a D&O policy issued by Great American in 2004 to AIG, which both Greenberg and AIG are fighting over in efforts to recoup defence costs related to previous litigation.
AIG claims that under the policy it alone has the right to decide which defence expenses get reimbursed.
In a letter to Great American it said the dispute "stems from Mr Greenberg's attempt to seize for himself and his colleagues the proceeds of directors and officers liability policies that exist to protect the assets of AIG for the benefit of all its stakeholders".
Great American has also asked the court to halt an arbitration Greenberg started at the end of March seeking the money. Greenberg and his companies nominated an arbitrator, which under the policy only AIG can do, Great American said. Greenberg didn't name AIG in the arbitration, it added.
The D&O dispute is the latest in a long line of contentious actions between Greenberg and his former company.
In February, Greenberg and other AIG officials lost a bid to throw out a 2004 lawsuit alleging financial wrongdoing at AIG. In December last year, AIG investors won final approval for an $115mn settlement over claims that the insurer overpaid the CV Starr agency by $1bn.