By David A. O’Neill, J.D.
The Indiana Supreme Court reached its decision in National Union Fire Insurance Company of Pittsburgh, PA et al. v. Standard Fusee Corp. on December 29, 2010. In its soon to be published opinion, the Court announced its decision to overturn the Court of Appeals ruling that Indiana law governed the interpretation of general liability insurance policies in environmental remediation proceedings involving Standard Fusee sites in multiple states.
Given that Indiana insurance law concerning an insurer’s duty to defend is notoriously more policyholder friendly than that of most states, the “intimate contacts” rule outlined in the Supreme Court’s decision can be expected to discourage corporations with environmental contamination sites in Indiana and in additional states from bringing declaratory judgment actions in Indiana courts. This is because the location of the contaminated property will no longer be the predominant factor in determining which state’s law the court will use to interpret the policies under which defense or indemnity for the characterization and remediation of the pollution is sought. Continue reading “INDIANA SUPREME COURT REVERSES STANDARD FUSEE DECISION; “INTIMATE CONTACTS” REPLACES “SITE SPECIFIC” CHOICE-OF-LAW RULE IN MULTIPLE ENVIRONMENTAL SITE INSURANCE COVERAGE DISPUTES”