Federated Not Liable For Gas Leak Coverage: 7th Circ.

Law360, New York (March 26, 2010, 5:29 PM EDT) -- A federal appeals court has affirmed a lower court decision to let Federated Mutual Insurance Co. off the hook in another insurer's suit seeking defense costs for a class action over groundwater contamination allegedly caused by a gasoline leak at an Indiana gas station.

The U.S. Court of Appeals for the Seventh Circuit denied plaintiff West Bend Mutual Insurance Co.'s appeal of a summary judgment ruling for Federated, which found that the defendant's general commercial liability policy excluded coverage for the leak.

After paying $4 million...
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