Before Suing For Unpaid Defense Costs ...

Law360, New York (April 3, 2009, 12:00 AM EDT) -- Consider this scenario: You represent a company sued for causing pollution. You tender the suit to your insurer. The insurer offers to defend the case under a reservation of rights.

The reservation of rights letter points out that the policy contains a pollution exclusion. You notice, however, that the pollution exclusion excepts from the exclusion pollution resulting from a sudden and accidental release of pollutants.

It is unclear from the pleadings whether the release of pollutants was sudden and accidental.

After years of litigation, the insurer...
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