Calif. Justices Set Montrose's Excess Enviro Coverage Path

Law360 (April 6, 2020, 9:30 PM EDT) -- California's highest court ruled Monday that former pesticide maker Montrose is not obligated to deplete all its lower-level insurance policies before it can tap into valuable excess policies to cover environmental damage claims, providing policyholders an easier path to accessing large insurance limits for losses spanning multiple years.

A unanimous California Supreme Court reversed a state appeals panel's ruling that terms found in many of Montrose Chemical Corp. of California's dozens of excess insurance policies mandate "horizontal exhaustion," whereby the company would have to exhaust all the lower-level policies it bought between 1961 and 1985 before it can obtain coverage from...

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