Full Description

El Paso Natural Gas Company operated a gas transmission system from 1959 to 1974 that crossed several states including Utah. In its system, El Paso used an air compressor lubricating oil later found to have contained a polychlorinated biphenyl (PCB). El Paso dumped condensed liquid wastes containing PCBs into unlined earthen pits and directly onto the ground. The contaminated wastes were carried into the surrounding environment. Hartford Accident and Indemnity Corporation insured El Paso under a general liability policy that excluded coverage for pollution unless it was "sudden and accidental." El Paso sold the pipeline to Northwest Pipeline Corp. (NW) but agreed to indemnify NW for any liability. NW discovered the contamination and reported it to the US Environmental Protection Agency (USEPA). NW cleaned the contaminated sites pursuant to a consent decree with the USEPA and sued El Paso, settling for $6.6 million. El Paso than sought indemnification from Hartford. Hartford brought this action seeking a court declaration that it was not liable. The trial court ruled for Hartford, and that decision was affirmed on appeal.

Product Details

Edition: Vol. 85 - No. 2 Published: 02/01/1993 Number of Pages: 1File Size: 1 file , 720 KB