N.J. Town Gets Initial Win Against Chubb on Pollution Liability

The municipality of Princeton, N.J., can continue to seek insurance coverage from a Chubb Ltd. unit for pollution liability, a federal court said.

The US District Court for the District of New Jersey kept claims for breach-of-contract and declaratory relief, but tossed bad faith claims against the insurer in a Wednesday ruling.

Ace American Insurance Co. provided a pollution liability insurance policy to Princeton from March 2019 to March 2020. In June 2019, the New Jersey Department of Environmental Protection found that construction materials had been illegally dumped at a site owned by the municipality.

Princeton notified Ace of the ...