ILNews

COA notes Indiana law would have changed outcome of environmental dispute

Back to TopCommentsE-mailPrintBookmark and Share

Using California law, the Indiana Court of Appeals ruled that an insurance company does not have to pay for an environmental cleanup, but the court noted it did not agree with the position of the Golden State and it would have ruled differently if Indiana law had been applicable.

The Court of Appeals reversed the order of the trial court granting summary judgment in favor of Technicolor USA, Inc. and remanded with instructions to grant summary judgment in favor of Employers Surplus Lines Insurance Co.

Judge John Baker dissented.

At issue in Northern Assurance Co. of American, Successor in Interest to Certain Liabilities of Employers Surplus Lines Ins. Co. v. Thomson, Inc., k/n/a Technicolor, USA, Inc., Technicolor Inc/Technicolor Limited, 4904-1208-PL-400, was whether Indiana or California law applied.

Technicolor was seeking coverage for environmental cleanup at three sites, two of which were located in California. Its connection to Indiana comes through Thomson, Inc., a corporation with ties to Indiana that acquired Technicolor assets in 2000.

Eventually, the film company brought suit against ESLIC, claiming that under Indiana law some of the environmental spills happened during the time that ESLIC’s policies were in place.

ESLIC argued that California law should apply when interpreting its policies and that under California law there was no coverage.

In a previous environmental dispute, the COA issued a summary judgment in favor of the insurer. The appeals court ruled in Thomson Inc. v. Continental Cas. Co. 982 N.E.2d 4, 6 (Ind. Ct. App. 2012), that under California law, the umbrella policy “damages” were limited to those that came from courtroom litigation and did not provide coverage for environmental contamination.

On the basis of the previous decision, the COA agreed with ESLIC. The court pointed out that most of the polluted sites are in California and all of the ESLIC policies were mailed to Technicolor’s California address.

Still the majority highlighted its opposition to the California law.

“We note here that we do not agree with the position California law takes on this matter,” Judge Paul Mathias wrote. “In fact, we agree with the arguments Technicolor made at oral argument that it is a waste of resources to require an insured to fight an administrative order in court in order to receive coverage under an insurance policy. Indeed, this court has formally come to this conclusion when applying Indiana law.”

In his dissent, Baker agrees with the majority to apply California law but disputes how the law is being interpreted. He argued that in light of the Golden State’s leadership on environmental issues and the opinions from its courts, California would likely apply its law to have insurance companies pay for cleanup.

“…I believe that if the California Supreme Court was presented with this case at this time, it would no longer permit ill-advised precedent from giving its environmental law the full and complete effect it was intended to have,” Baker wrote.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. I was looking through some of your blog posts on this internet site and I conceive this web site is rattling informative ! Keep on posting . dfkcfdkdgbekdffe

  2. Don't believe me, listen to Pacino: https://www.youtube.com/watch?v=z6bC9w9cH-M

  3. Law school is social control the goal to produce a social product. As such it began after the Revolution and has nearly ruined us to this day: "“Scarcely any political question arises in the United States which is not resolved, sooner or later, into a judicial question. Hence all parties are obliged to borrow, in their daily controversies, the ideas, and even the language, peculiar to judicial proceedings. As most public men [i.e., politicians] are, or have been, legal practitioners, they introduce the customs and technicalities of their profession into the management of public affairs. The jury extends this habitude to all classes. The language of the law thus becomes, in some measure, a vulgar tongue; the spirit of the law, which is produced in the schools and courts of justice, gradually penetrates beyond their walls into the bosom of society, where it descends to the lowest classes, so that at last the whole people contract the habits and the tastes of the judicial magistrate.” ? Alexis de Tocqueville, Democracy in America

  4. Attorney? Really? Or is it former attorney? Status with the Ind St Ct? Status with federal court, with SCOTUS? This is a legal newspaper, or should I look elsewhere?

  5. Once again Indiana has not only shown what little respect it has for animals, but how little respect it has for the welfare of the citizens of the state. Dumping manure in a pond will most certainly pollute the environment and ground water. Who thought of this spiffy plan? No doubt the livestock industry. So all the citizens of Indiana have to suffer pollution for the gain of a few livestock producers who are only concerned about their own profits at the expense of everyone else who lives in this State. Shame on the Environmental Rules Board!

ADVERTISEMENT