Insurers could soon face an onslaught of payment demands for so-called "stigma damages" claims as the number of environmental contamination claims and suits for methyl tertiary-butyl ether--a gasoline additive--continue to grow.
Approximately 200 MtBE lawsuits are currently pending in courts around the country, including a large multidistrict litigation in the U.S. District Court for the Southern District of New York.
This number appears to be on the rise as property owners and municipalities test for the presence of MtBE in groundwater contaminated from such sources as leaking underground gasoline storage tanks.
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