AIG unit, L.A. real estate developer settle over mall damage

June 27, 2026 - 06:19

An American International Group unit and prominent Los Angeles real estate developer Rick Caruso have reached a settlement in a lawsuit over damage to a shopping mall. The legal battle centered on claims that the insurer spent nearly a decade delaying and then partially denying a property damage claim.

The dispute involved the Promenade at Westlake, a large outdoor mall owned by Caruso's company. According to court filings, the property suffered significant damage from a water leak in 2015. Caruso's firm alleged that AIG's unit engaged in a pattern of stalling tactics, refusing to fully investigate or pay out on the claim for years. When the insurer finally responded, it reportedly offered only a fraction of the estimated repair costs, leading to the lawsuit.

The terms of the settlement were not disclosed. Both parties agreed to dismiss the case with prejudice, meaning it cannot be refiled. Caruso, known for developing upscale retail and residential projects like The Grove and Americana at Brand, has been vocal about insurance industry practices in the past. The resolution avoids a potentially lengthy trial that could have shed further light on claims handling procedures. Neither side offered additional comment beyond the joint dismissal notice.