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COA notes Indiana law would have changed outcome of environmental dispute

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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.
 

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  1. Someone off their meds? C'mon John, it is called the politics of Empire. Get with the program, will ya? How can we build one world under secularist ideals without breaking a few eggs? Of course, once it is fully built, is the American public who will feel the deadly grip of the velvet glove. One cannot lay down with dogs without getting fleas. The cup of wrath is nearly full, John Smith, nearly full. Oops, there I go, almost sounding as alarmist as Smith. Guess he and I both need to listen to this again: https://www.youtube.com/watch?v=CRnQ65J02XA

  2. Charles Rice was one of the greatest of the so-called great generation in America. I was privileged to count him among my mentors. He stood firm for Christ and Christ's Church in the Spirit of Thomas More, always quick to be a good servant of the King, but always God's first. I had Rice come speak to 700 in Fort Wayne as Obama took office. Rice was concerned that this rise of aggressive secularism and militant Islam were dual threats to Christendom,er, please forgive, I meant to say "Western Civilization". RIP Charlie. You are safe at home.

  3. It's a big fat black mark against the US that they radicalized a lot of these Afghan jihadis in the 80s to fight the soviets and then when they predictably got around to biting the hand that fed them, the US had to invade their homelands, install a bunch of corrupt drug kingpins and kleptocrats, take these guys and torture the hell out of them. Why for example did the US have to sodomize them? Dubya said "they hate us for our freedoms!" Here, try some of that freedom whether you like it or not!!! Now they got even more reasons to hate us-- lets just keep bombing the crap out of their populations, installing more puppet regimes, arming one faction against another, etc etc etc.... the US is becoming a monster. No wonder they hate us. Here's my modest recommendation. How about we follow "Just War" theory in the future. St Augustine had it right. How about we treat these obvious prisoners of war according to the Geneva convention instead of torturing them in sadistic and perverted ways.

  4. As usual, John is "spot-on." The subtle but poignant points he makes are numerous and warrant reflection by mediators and users. Oh but were it so simple.

  5. ACLU. Way to step up against the police state. I see a lot of things from the ACLU I don't like but this one is a gold star in its column.... instead of fighting it the authorities should apologize and back off.

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