Shell, insurers and attorneys take on liability---and each other
This paper reports on liability for environmental cleanup which often pits PRPs against their insurance carriers in a high-stakes game of semantics. At the heart of these disputes are obsolete, comprehensive general liability (CGL) policies that once offered coverage for sudden and accidental pollution. The pollution clause was eliminated from most CGLs by 1985, but the controversy stemming from the policies remained. Subject to frequent interpretation, the earlier CGL policies have been stripped of the legal sacredness normally afforded written contracts and offer no guarantees to either party. In court, judges and juries grapple with the language and circumstances of each case. To date, no clear winner has emerged from the courtroom. In one recent decision, a San Mateo Country Superior Court jury in California found Shell Oil Company (Houston) liable for cleanup at the U.S. Army's Rocky Mountain Arsenal near Denver. According to Shell, the company is entitled to recover the costs under its CGL policies, which included a provision for sudden and accidental pollution. However, in its decision, the jury found that the contamination was not sudden and accidental and, therefore, was not covered by the CGL policies. The insurers had argued that Shell knew of the contamination, precluding it from coverage under the terms of the policies.
- OSTI ID:
- 5603417
- Journal Information:
- Hazmat World; (United States), Journal Name: Hazmat World; (United States) Vol. 2:3; ISSN HMWOE; ISSN 0898-5685
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
020900 -- Petroleum-- Environmental Aspects
021000* -- Petroleum-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
290300 -- Energy Planning & Policy-- Environment
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294002 -- Energy Planning & Policy-- Petroleum
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