Insurer Sues Biofuel Maker Over Polluted Soybean Oil

Law360, New York (September 24, 2009, 7:14 PM EDT) -- Penn Millers Insurance Co. has sued Northeast Nebraska Biodiesel LLC, saying it should not have to pay for methanol-contaminated shipments of soybean oil because they fall under the policy's pollution exclusion.

The suit, filed in the U.S. District Court for the District of Nebraska on Wednesday, asked for a declaratory judgment that Penn Millers’ comprehensive general liability insurance policy with Northeast Nebraska did not cover the costs Northeast Nebraska incurred for contaminated shipments it made to one of its clients, Bunge North America (East) LLC....
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