EPA Actions May Trigger Duty of Insurers To Defend Repair Companies for Cleanup

Administrative action by the Environmental Protection Agency is enough to trigger the duty of four insurers to defend four ship repair companies potentially responsible for environmental contamination of Portland harbor, a federal district court in Oregon held Jan. 27 (Century Indemnity Co. v. Marine Group LLC).

The United States District Court for the District of Oregon, in an opinion by Magistrate Judge John V. Acosta, agreed with the policyholders that letters from EPA requiring action constitute a “suit” and that no policy exclusions apply that would excuse the insurers from their duty to defend.

Ship Repair Contaminated Portland ...