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July 2, 2010   Indiana Supreme Court to Hear Standard Fusee
By Jeffrey D. Claflin
PDF of Indiana Supreme Court to Hear Standard Fusee (84k PDF file)

The Indiana Supreme Court recently granted transfer in Standard Fusee v. National Union, and oral arguments are now scheduled for July 29.  It will review the Court of Appeals' affirmance of the trial court’s rulings (1) that the so‐called “absolute” pollution exclusion is ambiguous and unenforceable under Indiana law, (2) that “voluntary” remediations in nominal cooperation with governmental authorities are “suits” under Indiana law, and (3) that, because there is at least a potential for coverage under the policies for environmental liability actions, Standard Fusee is entitled to defense from its insurers against those actions. But while the trial court had ruled that Indiana law would apply to the entire controversy to determine coverage for the actions arising in both Indiana and California, the Court of Appeals had rejected Indiana’s “uniform contract interpretation approach” in favor of a site specific approach, where Indiana law would be applied to determine insurance coverage for the Indiana claim, and California law for the California claim.  To learn more, please click on the attached PDF document.

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