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Thursday, Mar 28, 2024
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City Reaches Settlement With AIG

The trickle down theory of economics may be working for the city of San Diego, which announced Oct. 7 a $5.5 million settlement with its liability insurance carrier, AIG, for legal costs in a multifaceted and lengthy litigation involving developer Roque De La Fuente.

Last month, AIG was bailed out of what appeared to be financial collapse by an $85 billion loan that entailed the federal government taking an 80 percent equity stake in AIG.

City Attorney Michael Aguirre took credit for the legal victory in recovering attorneys fees the city spent to litigate cases that date back to 2001 when a San Diego jury initially granted De La Fuente a $94.5 million award.

That verdict was amended, and triggered years of appeals and new trials, all of which ended in favorable rulings to the city, but required legal help from several outside law firms, particularly Latham & Watkins.

In addition to the most recent settlement with a subsidiary of AIG, Aguirre said the company agreed to represent the city in ongoing defense costs with De La Fuente, pay 80 percent of the outside legal fees, and 100 percent of court costs.

, Mike Allen

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