7th Circ. Says No Coverage For Polluting Town

Law360, New York (March 12, 2012, 3:44 PM EDT) -- Scottsdale Insurance Co. and National Casualty Co. do not have a duty to defend the Chicago suburb of Crestwood, Ill., from claims that it knowingly polluted the community’s water supply, a Seventh Circuit panel said Monday.

A three-judge panel of the Seventh Circuit shot down arguments made by the village of Crestwood that the insurance companies’ reliance on a policy exclusion for pollution was improper and upheld a lower court’s ruling that let the insurers off the hook.

“The defendants point out that they didn’t originate...
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