Insurer Wins Toxic Water Suit Against Ill. Village

Law360, New York (March 24, 2011, 10:17 PM EDT) -- Scottsdale Insurance Co. does not have to cover a Chicago suburb that knowingly gave its citizens contaminated water, an Illinois federal judge ruled Thursday.

Pollution exclusions in Scottsdale's policies with the village of Crestwood saved it from defending or indemnifying the municipality, Judge Virginia M. Kendall of the U.S. District Court for the Northern District of Illinois ruled.

The ruling, which granted the insurer's motion for summary judgment, closes the case.

Crestwood and some of its former executives face more than two dozen underlying lawsuits for...
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