No Coverage for Defense Costs Incurred in Response to CERCLA Demand

more+
less-

U.S. Court of Appeals for the Fourth Circuit

In Industrial Enterprises, Inc. v. Penn America Ins. Co., ___ F.3d ___, 2011 WL 925451 (4th Cir. (Md.) March 18, 2011), the U.S. Court of Appeals for the Fourth Circuit ruled that a commercial general liability (CGL) policy providing coverage for “sums which the insured shall become legally obligated to pay as damages because of "property damage” did not cover an insured’s defense costs incurred in response to the Environmental Protection Agency’s (EPA) demand under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) to remediate the presence of hazardous substances on the insured’s land. The court ruled that the insured’s defense costs did not constitute “property damage” under the CGL policy because the insured’s potential liability under CERCLA arose from the EPA’s regulatory authority rather than the federal government’s rights as a property owner.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

more+
less-

Sedgwick LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×