Newmont USA Ltd. v. Allstate Ins. Co., et al. (U.S. District Court, E.D. WA)
Newmont USA Ltd., one of the world’s largest gold producers which also mines lead, silver and uranium, settled claims on Monday against two insurers, Allstate Insurance Company and Seaton Insurance Company. The claims involved a coverage dispute over the cleanup of a former uranium mine in the state of Washington. Approval of the settlement and dismissal of the action was made in separate Orders by U.S. District Court Judge Justin Quackenbush (E.D. WA), although both insurers will remain involved in the litigation as cross-claimants with other insurers under numerous policies with effective periods from 1969 through 1985. A third insurer, Employers Insurance Company of Wassau, reached a settlement in Principal and the court approved a dismissal of pending motions as moot in light of the agreement. The terms of the settlements were not made public.
The dispute involved the cleanup of the Midnite Mine Superfund site, located in the Selkirk Mountains in eastern Washington. The mine was active from 1955 to 1981. The U.S. government sued Newmont and its subsidiary in Washington federal court in 2005 seeking damages under the Comprehensive Environmental Response, Compensation and Liability Act for pollution from the site. A 2008 decision found that Newmont was liable for $15.8 million of the site's cleanup costs. Newmont argued in the coverage dispute that none of the insurers had met their duty to defend them or reimburse them for defense costs over the environmental claims. The company also said the insurers had refused to indemnify them.
For a copy of the orders click here