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Environment & Energy Report

Insurer Absolved of $50 Million Pollution Award Against Recycler

June 25, 2020, 7:44 PM

Neighbors of an Elkhart, Ind., wood recycling company can’t recover any of a $50 million pollution judgment against the company from its insurer because the recycler knew of the extent of the pollution when the policies took effect, the Seventh Circuit said Thursday.

Westfield Ins. Co. is off the hook because the policies it issued to VIM Recycling contained “known claims” exclusions, barring coverage for a loss that the policyholder knows has already taken place, the U.S. Court of Appeals for the Seventh Circuit said.

In the underlying suit against VIM, the neighbors alleged that they complained to the company...

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