Town Demands Toxic Water Defense Coverage In 7th Circ.

Law360, Chicago (January 13, 2012, 6:36 PM EST) -- Pollution exclusions in policies issued by Scottsdale Insurance Co. do not bar coverage for defense costs a Chicago suburb incurred in suits alleging that it knowingly gave its citizens contaminated water, a lawyer for the village told the Seventh Circuit on Friday.

Robert Chemers of Pretzel & Stouffer Chtd. argued that the pollution exclusion was "overly broad" and that, in this case, the village of Crestwood, Ill., was a distributor of the contaminated water and was outside the policy's exclusion.

"The village here is not the...
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