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. KUDOS to the Indiana Supreme Court for realizing that some bureacracies need to go to the stake. Recall what RWR said: "No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we'll ever see on this earth!" NOW ... what next to this rare and inspiring chopping block? Well, the Commission on Gender and Race (but not religion!?!) is way overdue. And some other Board's could be cut with a positive for State and the reputation of the Indiana judiciary.

  2. During a visit where an informant with police wears audio and video, does the video necessary have to show hand to hand transaction of money and narcotics?

  3. I will agree with that as soon as law schools stop lying to prospective students about salaries and employment opportunities in the legal profession. There is no defense to the fraudulent numbers first year salaries they post to mislead people into going to law school.

  4. The sad thing is that no fish were thrown overboard The "greenhorn" who had never fished before those 5 days was interrogated for over 4 hours by 5 officers until his statement was illicited, "I don't want to go to prison....." The truth is that these fish were measured frozen off shore and thawed on shore. The FWC (state) officer did not know fish shrink, so the only reason that these fish could be bigger was a swap. There is no difference between a 19 1/2 fish or 19 3/4 fish, short fish is short fish, the ticket was written. In addition the FWC officer testified at trial, he does not measure fish in accordance with federal law. There was a document prepared by the FWC expert that said yes, fish shrink and if these had been measured correctly they averaged over 20 inches (offshore frozen). This was a smoke and mirror prosecution.

  5. I love this, Dave! Many congrats to you! We've come a long way from studying for the bar together! :)

ADVERTISEMENT