The State of California's jury victory against CNA and other insurance providers in a suit seeking coverage for cleanup of the Stringfellow Acid Pits, a toxic waste site, was recognized as one of the 60 Top Verdicts in the United States of 2005 by The National Law Journal and its affiliate, Verdict Search.

FACTS & ALLEGATIONS The plaintiff is the state of California. Between 1956 and 1972, about 35 million gallons of hazardous waste from various industries were deposited at the Stringfellow Acid Pits, a privately-owned containment site in Riverside County about a mile north of Glen Avon, a community located about 45 miles east of Los Angeles. The site was located in a box canyon. The wastes, which included pesticides, heavy metals and other toxic materials, were placed in unlined pits, believed at the time to be underlain by impervious granite. These wastes eventually contaminated soil, ground water and surface water.

INJURIES/DAMAGES The state claimed the covered cleanup costs to total a present value of $533,082,866.93. It claimed that over time this amount could increase to over $700 million. The cleanup includes identifying, pumping and treating contaminated groundwater.

The defendants stipulated to covered cleanup costs valued in excess of $50 million.

Because of the defendants’ stipulation, the jury was not presented evidence with respect to damages amounts.

RESULT The jury found that all defendants breached their insurance policies with the state. It found no concealment on the state’s part and that the state committed no willful acts to cause property damage.

The policy limits of the policies which the jury found the insurance companies breached totaled $28.05 million. Of this figure, CNA Casualty, Continental Casualty and Continental Insurance’s policy limits are $12 million; Employers Insurance of Wausau, $8 million; Yosemite Insurance Co., $5 million; Stonebridge Life Insurance, $2,050,000; and Horace Mann Insurance Co., $1 million. Each of these figures represents the policy limits of the insurers’ contracts with the state.

Judge Kaiser followed the verdict but limited the state to the selection of a single tower (policy period) of coverage. The state selected the 1970 to 1973 tower, which included policies issued by Continental Casualty ($5 million), Continental Insurance/Harbor Insurance Co. ($5 million) and Wausau ($2 million) for a total of $12 million.

To view the full details of the case, please click the following link: Top 100 Verdicts of 2005