Insurers Ordered To Cover CERCLA Admin Proceedings

Law360, New York (November 1, 2011, 7:30 PM EDT) -- An Idaho federal judge ruled last week that administrative proceedings under the Comprehensive Environmental Response, Compensation, and Liability Act count as suits under state insurance law, meaning that the costs of dealing with such proceedings qualify as defense costs and must be covered by insurers.

U.S. District Judge B. Lynn Winmill granted partial summary judgment on Oct. 26 to Wells Cargo Inc., an asphalt paving company suing its insurer, Transport Insurance Co., over its defense costs for a CERCLA proceeding.

In 2004, the U.S. Forest Service...
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