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Insurer Not Liable in Discharge
Publication year - 1991
Publication title -
journal ‐ american water works association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.466
H-Index - 74
eISSN - 1551-8833
pISSN - 0003-150X
DOI - 10.1002/j.1551-8833.1991.tb07240.x
Subject(s) - damages , liability , law , business , corporation , property insurance , agency (philosophy) , plaintiff , insurance policy , political science , casualty insurance , sociology , social science
In 1988, the US Environmental Protection Agency (USEPA) and the State of Illinois filed complaints against Outboard Marine Corporation (OMC), asserting that it was responsible for high levels of PCBs in Lake Michigan and Waukegan Harbor. They sought to enjoin further contamination and sought response costs for cleanup. OMC's comprehensive general liability policy, issued by Liberty Mutual Insurance Company, covered damages for bodily injury or property damage caused by an occurrence. The policy contained a pollution exclusion clause that excepted sudden and accidental discharges. The evidence demonstrated that the pollution in question had occurred over a number of years. The insurer refused to defend the USEPA actions brought against OMC. OMC then sought a declaration that the insurer had a duty to defend it. The trial court ruled for the insurer.