Publications

On March 9, 2009, the California Supreme Court, in a unanimous decision, held that certain insurers that afforded liability insurance coverage to the State of California may be liable for a portion of the State’s more than $500 million estimated cost of cleaning up of the Stringfellow “Acid Pits.” The Court found that in the case of a hazardous waste site designed to contain liquid contaminants, the relevant discharge for purposes of applying the “sudden and accidental” pollution exclusion was the accidental release of chemical waste from containment at the site, as opposed to the routine discharge of wastes into the site. The Court also employed a “concurrent causation” analysis to rule that an insurer is obligated to fully indemnify its insured where substantial nonexcluded causes render the insured liable for indivisible harm, even if other excluded causes contributed to the injury or property damage. However, the decision also approved prior appellate decisions holding that the policyholder must show that a covered act or event is actually a “substantial cause” of the harm.  To read the full memorandum, please click here or download the PDF below.