No Further Information Required: 10th Circuit Confirms Clear Pollution Exclusion and Rejects Insured’s Attempts to Introduce Extrinsic Evidence

This environmental coverage action involved a determination of the insurers’ obligations to reimburse the policyholder for its litigation costs arising from an action commenced by over 400 Chesapeake, Virginia landowners.  The landowners alleged a golf course developer caused personal injury and property damage through the use of contaminated fly-ash material during the construction of a nearby golf course.

The policyholder was insured under seven commercial general liability policies that required the insurers to reimburse Headwaters for expenses associated with lawsuits that occurred during the policy …

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Phase I/II Environmental Assessment Report Issued To Property Owner Held To Constitute A Claim For Environmental Losses Under A Claims-Made Policy

This environmental action involves a determination of coverage under a claims-made policy stemming from the investigation and clean-up of a site in Waterbury Connecticut.  Specifically, Adelphia entered into a contract to sell its Waterbury property and engaged an environmental consultant to conduct an environmental audit of the site prior to the sale pursuant to the Connecticut Property Transfer Act.  The Act prohibited transfer of an “establishment” without certifying that a parcel had been investigated for the potential discharge of hazardous waste and resultant remediation.

The …

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Insurers’ Disclaimer Involving Environmental Damage Not Subject To Insurance Law §3420(d) Notice Requirements

This environmental coverage action involved a dispute over whether the insurers had a duty to provide coverage for the remediation of environmental damage at several manufactured gas plant (MGP) sites formerly owned by Long Island Lighting Company (LILCO) and the timeliness of the excess insurers late notice defense asserted as an affirmative defense in its answer.  Defendants issued excess insurance policies to LILCO that required, as a threshold condition for coverage, LILCO to provide prompt notice of any occurrence that potentially implicated defendants’ duty of …

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Environmental Coverage Report Winter 2014 is Now Available

Goldberg Segalla’s Environmental Coverage Report provides summaries of and access to the latest environmental coverage developments nationwide. Cases are organized by court and date. In addition, we provide the latest information regarding news in the environmental coverage industries.

Click here for the latest edition.

We appreciate your interest in our publication, and welcome your feedback. We also encourage you to share the publication with your colleagues.  If others in your organization are interested in receiving the publication, please contact Paul C. Steck or Joanna M.

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Environmental Testing Costs Not Part Of Indemnity Agreement

This environmental action involves the interpretation of the scope of an indemnity agreement involving the costs of environmental testing on property contaminated with percholorethylene (PCE) in a real property transaction.

Cadlerocks entered into a loan in the principal amount of $1,925,000.  The note was secured by a mortgage, along with a separate Environmental Indemnity Agreement.  Cadlerocks failed to make the payment on the balloon balance due on the note and defaulted on the note causing the Trust to commence foreclosure proceedings.

The original lender conducted …

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No Coverage Available For Lead Paint Related Injuries

This coverage action arises from a dispute regarding the applicability of a total pollution exclusion contained in a commercial general liability policy.  The insurer, Cumberland, relied on the exclusion in denying coverage for a suit involving alleged negligent removal of lead paint from a residence causing injury to a child.  The plaintiff asserted that the subject total pollution exclusion does not apply to lead-based injuries that are not traditional environmental contamination.

Cumberland denied coverage for the underlying suit based on the total pollution exclusion advising …

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Insurer’s Environmental Subrogation Claims Under CERCLA §107(a) Dismissed

Chartis Specialty Ins. Co. v. United States Of America
(U.S.D.C. Northern District of California, July 19, 2013)

This environmental coverage action arises from a dispute as to whether an insurer can maintain an action under CERCLA’s subrogation provisions against the United States government where it is alleged the government is responsible for environmental contamination at a site in which the plaintiffs have been paying clean-up costs.  Specifically, the plaintiffs, Whittaker Corporation, and its insurer, Chartis, brought claims under §107(a) of CERCLA seeking to recover all …

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Injury-In-Fact Trigger Applied In Alabama Manufactured Gas Contamination Suit

Alabama Gas Corp. v. Travelers Cas. & Surety Co.
(U.S.D.C. Northern District of Alabama, July 16, 2013)

This environmental coverage action arises from a dispute as to whether the insurer’s multiple policies provided indemnity for past environmental contamination at a former manufactured gas plant prior to being redeveloped as low income housing.

Specifically, the Huntsville Gas Light Company, which incorporated in 1856, provided manufactured gas from various sources to customers until 1946.  In 1946, the Huntsville facility was converted to a propane air system …

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Environmental Coverage Quarterly Summer 2013 is Now Available

Goldberg Segalla’s Environmental Coverage Quarterly provides summaries of and access to the latest environmental coverage developments nationwide, and is published quarterly. Cases are organized by court and date. In addition, we provide the latest information regarding news in the environmental coverage industries. For a free copy, please click here.

If you have any questions or would like to receive the newsletter via email, please contact Paul Steck at [email protected]gsegalla.com or Joanna M. Roberto at [email protected].…

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Cases for Summer 2013 Environmental Coverage Quarterly

Cases provided courtesy of LexisNexis.

Am Home Ins v. Arrow

Assn. Imperial v. Fireman’s Ins

Boston Gas v. Century

BSC Holding v. Lexington Ins

Chubb v. Space Systems

Colonial Oil v. Indian Harbor

Granite State v. Am BuildingMa

Grinnell Mut Ins v. Hubbs

Indian Harbor v. US

InRe Deepwater

InRe Settoon v. St. Paul

Mitsui v. AutoElev

MtHawley v. Dania2

Olin v. Century Ind

Siltronic v. Wausau

Starr v. SGS

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