Pepsi Excess Insurers Beat Contamination Claims

Law360, Washington (August 18, 2011, 12:29 PM EDT) -- Continental Casualty Co., London Market Insurers and Allstate Insurance Co. on Tuesday won a motion to dismiss Pepsi-Cola Metropolitan Bottling Co. Inc.'s claims for excess coverage on liability claims resulting from alleged groundwater contamination by a Pepsi predecessor in California.

Pepsi's suit had demanded coverage from both its primary and excess liability insurers for more than 1,100 claims from residents who said they were exposed to chemical-tainted groundwater contaminated by Remco Hydraulics Inc., a Pepsi predecessor that ran a chromium-plating facility in Willits, Calif.

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