CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - TUESDAY, JUNE 9, 2026

Sewage Treatment Agency Sues Insurer and Contractor after Wall Failure and Sewage Leak

January 22, 2013
CDJ STAFF

Trial preparations continue over the failure of a wall at a sewage treatment plant and the failure of the insurer to provide coverage. The Binghamton-Johnson City Joint Sewage Treatment Plant sued its insurer, American Alternative Insurance Corp., in March 2012 over insurance coverage. AAIC claimed that the wall failure, which released hundreds of thousands of gallons of sewage, was due to structural defects which preceded the policy. AAIC did pay more than $300,000 for covered losses, although officials claim that coverage should be a further $3.5 million.

Additionally, the board is suing the contractor who constructed the wall. Here, the operators of the sewage plant are seeking $20 million. The wall was built as part of a $67 million improvement project between 2004 and 2006.


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