Standun, Inc. v. Fireman's Fund Insurance

In this case, we are concerned with comprehensive general liability insurance policies containing standard “sudden and accidental” pollution exclusions. For the policy years in question, the insured operated a machine shop and contracted for the regular off-site disposal of its liquid wastes at a municipal landfill. Subsequently, the insured was sued to contribute to the costs of the environmental cleanup of the landfill. The insured sought a defense from its insurers, which they declined to provide. The insured brought this action for declaratory relief, and the trial court entered summary judgment in favor of the insurers. We conclude coverage was barred by the pollution exclusion, because the property damage arose out of the purposeful, long-term, and regular discharge of waste materials into or upon the land by the insured or its agent. We affirm.

Facts and Procedural Background

The Landfill

Operating Industries, Inc. (Oil) operated a 190-acre municipal landfill in Monterey Park. The landfill was in operation between 1948 and 1984, and was used for the disposal of industrial, commercial, and residential wastes. The disposal of liquid industrial wastes commenced in…