Insurance Attorneys Set Precedent With Nebraska Supreme Court Victory

Frank Winston led the Steptoe team that obtained a victory on behalf of United States Fidelity and Guaranty Company (USF&G) in Dutton-Lainson v. Continental Ins. Co., 271 Neb. 810 (2006) before the Nebraska Supreme Court.  Dutton-Lainson, a Nebraska manufacturing corporation, had been required by the EPA to pay millions of dollars to clean up three Nebraska Superfund sites.  Dutton-Lainson sued USF&G and its other insurers for reimbursement.  USF&G moved for summary judgment arguing that the pollution exclusion in its policies barred coverage. 

The trial court granted USF&G's motion for summary judgment and the Nebraska Supreme Court affirmed on appeal.  The Nebraska Supreme Court rejected Dutton-Lainson's argument that the "sudden and accidental" exception to the pollution exclusion was ambiguous and should be construed in favor of coverage. 

Instead, the Supreme Court held that "sudden" in the context of the pollution exclusion refers to an abrupt release of pollutants, and that Dutton-Lainson's regular and systematic releases of solvents were not "sudden."

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