17 May 2008

American Samoa government ordered to pay major insurance bill

8:34 am on 17 May 2008

The American Samoa Government must look for funds to pay a $6.6 million judgment for a fire which destroyed the Laufou Shopping Centre.

The amount has to be paid to Progressive Insurance , which insured the shopping centre.

The government had asked the court to stay the judgment, made last year, pending an appeal, however its motion was denied.

The court found that ASG's likelihood of success on appeal is low.

The ruling states while the lack of immediately available funds is problematic for the American Samoa government, beginning the process of finding a funding source for the judgment is not irreparably harmful.