Goodstein
Goodstein v. Continental Casualty Co.
Opinion
Opinion
Berzon, J.
At the heart of this insurance coverage dispute lie two properties, identified as contaminated by the State of Washington, that were sold in their polluted state rather than remediated. After the sale, Appellant Robert I. Goodstein, as receiver, tendered a $5.3 million claim to Appellee Industrial Indemnity Co. (“Industrial”) under a comprehensive general liability (“CGL”) policy, reflecting the difference between “the appraised value of the sites if uncontaminated less the sales price of the sites in their contaminated states.” Industrial refused to pay, and Goodstein consequently brought this lawsuit, seeking a declaration that Industrial owed a duty to indemnify and defend Goodstein under the policy and damages for breach of both duties. The district court granted summary judgment for Industrial on all claims, and Goodstein timely appealed.
We affirm the district court’s holding that Goodstein’s claim for the diminution in the sale value of the properties due to pollution was not covered under Industrial’s policy, but reverse the district court’s conclusion that Industrial is as a matter of law not liable for breaching its duty to defend Goodstein.