National Union Insurance Co. of Pittsburgh has been relieved of paying to defend the town of Norwood, Massachusetts, and the Norwood Airport Commission (NAC) from a lawsuit by Boston Executive Helicopters (BEH) over a second FBO at Norwood Memorial Airport. In its own suit against Norwood and NAC, National Union claimed that their actions taken against BEH were illegal and retaliatory. Thus, the insurance company claimed it is not liable for damages or payment to defend the airport in past or future costs.
National Union has been footing the costs for the last several years and did not want to be liable for any possible damages in the pending BEH v. NAC federal suit. In that lawsuit, Boston Executive Helicopters claims the city has illegally prevented it from building what would be the second FBO at Norwood.
Federal judge Richard Sterns has ruled in favor of the insurance company and against the town of Norwood. He concluded that National Union is “relieved of its duty to defend Norwood against the retaliation claim” and “Norwood’s cross-motion for summary judgment is denied.”
NAC chairman Mark Ryan told AIN, “The decision concludes that the insurance policy, as presented, does not provide coverage for claims of retaliation. However, the town has other insurance coverage to defend against BEH’s myriad false claims and accusations.”