State v. Hydrite Chemical Co.
Court of Appeals of Wisconsin · 2002-08-01 · cited 5×
This case involved Hydrite Chemical Company, which faced a lawsuit from the State of Wisconsin alleging violations of the Spills Law and public nuisance due to groundwater contamination at its solvent reclamation facility, seeking an injunction for environmental cleanup, monetary damages for natural resource injuries, and penalties. Hydrite sought indemnification and defense costs from its insurers under comprehensive general liability policies covering sums the insured becomes legally obligated to pay as damages for property damage. The court held that the policies provided no coverage, following the precedent in City of Edgerton v. General Casualty Co., because the relief sought was essentially to compel Hydrite to fulfill its federal and state environmental cleanup obligations rather than to pay damages. The court also affirmed that one insurer had no duty to pay defense costs, as there was no coverage under the policies.