Lloyd's of London

Springdale, AR: (Aug-02-07) Lloyd's of London underwriters, an international insurance firm, filed suit against Advanced Environmental Recycling Technologies Inc. (AERT) over a pending final settlement of AERT's 2003 Junction, Texas, fire claim. AERT, which makes and sells composite decking materials, had agreed to a settlement in which Lloyd's agreed to pay AERT $700,000 for damages sustained during the fire and the parties provided mutual releases to one another. Lloyd then sued AERT in 2005, alleging that AERT did not rebuild the plant exactly as it had existed before the fire and that AERT committed fraud in seeking reimbursement for alleged improvements made to the facility. Lloyd's also sought to retroactively cancel its portion of the insurance policy. AERT said it believes the Lloyd's lawsuit is without merit, and it filed a counterclaim denying all of Lloyd's allegations and seeking immediate and full reimbursement for rebuilding the plant. It is seeking damages of about $1.8 million, plus attorney and court fees and punitive damages. [ARKANSAS BUSINESS: FIRE CLAIM]

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Published on Aug-3-07