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Court rules in favor of insurer in environmental cleanup dispute

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A release executed between a chemical manufacturing business and its insurer that relieved the insurer from claims or demands related to remediation was unambiguous and covered all policies held by the company, not just the primary liability ones, the Indiana Court of Appeals ruled.

United States Fidelity and Guaranty Co. was the general liability insurer of Warsaw Chemical Company when Warsaw learned of environmental contamination. Warsaw sought reimbursement for the remediation pursuant to its primary and excess policies. The insurer denied coverage under primary and excess liability policies. In 1992, the two entered into the release in exchange for $25,000.

Fifteen years later, Warsaw sued, arguing that the release only covered primary liability polices and there should be coverage under the excess policies. The trial court ultimately entered judgment in favor of Warsaw for $417,953.

At issue in United States Fidelity and Guaranty Company v. Warsaw Chemical Company, Inc., 49A04-1203-CT-97, is the language in the 1992 release and the distinction between recitals – or “whereas” clauses – and operative language in contracts. The release stated that USF&G would be forever discharged “from any further claims … .” The Court of Appeals held under the binding precedent of Irwin’s Bank v. Fletcher, etc. Trust Co. Rec (1924) 195 Ind. 699, 145 N.E. 869, 146 N.E. 869, and Kerfoot v. Kessener (1949) 227 Ind. 58, 84 N.E.2d 190, the recitals referencing only the primary policies may not be used to interpret the unambiguous operative language releasing the insurer from any further claims.

The judges rejected Warsaw’s claim that those cases are no longer good law based on OEC-Diasonics Inc. v. Major, 674 N.E.2d 1312 (Ind. 1996).

“Recital language that arguably suggests that the release applied to only some of the insurance policies Warsaw had with USF&G does not trump this clear language. Because the Release covered the excess policies, the trial court erred in denying USF&G’s summary judgment motion on this point. We therefore reverse the judgment of the trial court and remand for entry of summary judgment in favor of USF&G,” Judge Cale Bradford wrote.

 

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  1. Can I get this form on line,if not where can I obtain one. I am eligible.

  2. What a fine example of the best of the Hoosier tradition! How sad that the AP has to include partisan snark in the obit for this great American patriot and adventurer.

  3. Why are all these lawyers yakking to the media about pending matters? Trial by media? What the devil happened to not making extrajudicial statements? The system is falling apart.

  4. It is a sad story indeed as this couple has been only in survival mode, NOT found guilty with Ponzi, shaken down for 5 years and pursued by prosecution that has been ignited by a civil suit with very deep pockets wrenched in their bitterness...It has been said that many of us are breaking an average of 300 federal laws a day without even knowing it. Structuring laws, & civilForfeiture laws are among the scariest that need to be restructured or repealed . These laws were initially created for drug Lords and laundering money and now reach over that line. Here you have a couple that took out their own money, not drug money, not laundering. Yes...Many upset that they lost money...but how much did they make before it all fell apart? No one ask that question? A civil suit against Williams was awarded because he has no more money to fight...they pushed for a break in order...they took all his belongings...even underwear, shoes and clothes? who does that? What allows that? Maybe if you had the picture of him purchasing a jacket at the Goodwill just to go to court the next day...his enemy may be satisfied? But not likely...bitterness is a master. For happy ending lovers, you will be happy to know they have a faith that has changed their world and a solid love that many of us can only dream about. They will spend their time in federal jail for taking their money from their account, but at the end of the day they have loyal friends, a true love and a hope of a new life in time...and none of that can be bought or taken That is the real story.

  5. Could be his email did something especially heinous, really over the top like questioning Ind S.Ct. officials or accusing JLAP of being the political correctness police.

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