City Attorney Mike Aguirre held a press conference this afternoon to announce a $5.5 million settlement in a lawsuit against American International Group, Inc.,the city’s liability insurance carrier in three lawsuits fought between the city and South Bay developer Roque de la Fuente.

De la Fuente originally prevailed against the city with a $94.5 million judgment, but that award was reversed on appeal and the city was awarded more than $4.3 million in legal fees. AIG initially refused to pay the city’s costs in the lawsuit, but has now agreed to settle with the city for the $5.5 million.

A press release from the City Attorney’s Office quotes Aguirre:

“For more than four years, the City fought this powerful financial giant every step of the way from forcing them to release documents to obtaining depositions,” said City Attorney Aguirre. “I am proud of the City’s legal team.”

After the city pays its outside counsel, it will receive a net payment of $4.6 million.

AIG also agreed, as part of the settlement, to represent the city in future ongoing defense costs in lawsuits against de la Fuente, and to pay 80 percent of outside counsel attorneys’ fees and 100 percent of court costs.

WILL CARLESS

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