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The Supreme Court of Wisconsin Overturns Anti-Policyholder Line of Rulings in Environmental Clean-Up Case

  • January 13, 2004

Anderson Kill submitted briefing on behalf of amicus curiae United Policyholders in support of plaintiff-policyholder’s successful appeal in Johnson Controls, Inc. v. Employers Ins. of Wausau, et al.

In a strongly written opinion, Wisconsin’s highest court overturned prior controlling precedent and held that remediation costs constitute "damages" when incurred to comply with the Comprehensive Environmental Response, Liability and Conservation Act ("CERCLA") and the requirement of a "suit" is met by PRP letters under CERCLA. Thus, coverage under the plaintiff’s Comprehensive General Liability ("CGL") policy was available. The court reasoned that remediation costs, like damages, are retrospective and repair property. That holding is a return to longstanding principles of Wisconsin law. Moreover, if an actual lawsuit filing was required to trigger coverage under the term "suit," policyholders would be encouraged to resist government efforts to remediate superfund sites, which is contrary to sound public policy. Anderson Kill attorneys Eugene R. Anderson and William G. Passannante represented amicus curiae United Policyholders.A copy of the decision may be found http://www.wisbar.org/res/sup/2003/01-1193.htm.

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Eugene R. Anderson
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William G. Passannante
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