Manufactured rubber stamps-printing plates and in process

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Reference no: EM132212412

Flexdar manufactured rubber stamps and printing plates and in the process, used the chemical trichloroethylene (TCE). When it was discovered that TCE was present in the groundwater around the plant, the Indiana Department of Environmental Management said Flexdar would be liable for cleanup costs. Flexdar had a general liability policy and an umbrella policy with State Automobile Mutual Insurance (State Auto). There was a pollution exclusion in the policy. Pollutants were defined as “any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste.” State Auto said it was not required to cover the costs for the cleanup. Flexdar sued, arguing that the language of the policy was ambiguous and therefore open to interpretation by the court. Was the exclusion clause sufficiently ambiguous so that interpretation was required? Explain.

Reference no: EM132212412

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