Intel Corp. v. Hartford Acc. and Indem. Co.

AMENDED ORDER GRANTING MOTION FOR SUMMARY ADJUDICATION

I. INTRODUCTION.

This case presents an important question of law the resolution of which may have’ implications beyond the scope of this lawsuit. In this motion, plaintiff Intel Corporation (“Intel”) seeks an order requiring defendant The Hartford Accident and Indemnity Company (“Hartford”) to reimburse it for expenses incurred under a “comprehensive general liability” insurance policy. The question presented is whether the policy involved covers costs incurred in connection with the cleanup of hazardous waste located on and beneath the insured’s property. Although addressed in other jurisdictions, it is a question of first impression for appellate courts in the State of California. For reasons explained below, the Court concludes that the policy encompasses the claim made by Intel and that Hartford is liable under the terms of the policy for some, though perhaps not all, of the cleanup costs incurred by Intel.

II. FACTUAL BACKGROUND.

Plaintiff Intel is an international manufacturer of semiconductors with its corporate headquarters in Santa Clara, California. During the late 1970s and early 1980s, Intel’s production…