Policy language defend any suit and damages

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Reference no: EM132091851

Anderson Development Co. (ADC) manufactures organic materials at its plant in Adrian, Michigan. The Environmental Protection Agency (EPA) sent ADC a formal notification that it was considered a "potentially responsible party" (PRP) for the release of hazardous substances into the soil and ground-water. This notice was called a PRP letter. ADC notified its insurer Travelers of the letter, and Travelers contended that it was not prepared to defend or cover ADC in the matter. The EPA and ADC entered a consent decree wherein ADC agreed to the cleanup activities, spending more than $6 million on the cleanup. ADC brought an action against its insurer, seeking coverage under its general liability insurance policies for the cost of its defense and the cost of cleanup. Travelers responded that its policy language "defend any suit" and "damages" did not apply to this EPA action. Decide. [Anderson Development Co. v. Travelers Indemnity Co., 49 F3d 1128 (6th Cir.)]

Reference no: EM132091851

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