ELR Citation: 46 ELR 20081
No(s). 5:14-cv-99 (E.D.N.C. Apr 14, 2016) (Dever, J.)

A district court held that an insurer has no duty to defend or indemnify a company in two underlying actions seeking contribution for past and future costs incurred at a PCB-contaminated site. The company had sent transformers to the site for repair, during which PCBs were released. The company was later identified as a PRP in the underlying actions. Although the company's insurance policy contained a pollution exclusion clause, it also contained a sudden and accidental exception. The company therefore claimed the pollution exclusion clause did not apply. The underlying actions, however, do not allege a sudden and accidental release of PCBs at the site. The pollution exclusion clause therefore applies, and the insurer has no duty to defend or indemnify.