ELR Citation: ELR 20582
No(s). 85-71371 (E.D. Mich. Dec 10, 1990)

The court, which previously held that insurers did not have a duty to indemnify policyholders for environmental contamination at four sites in New Hampshire, holds that an insurer's duty to defend the policyholders terminated at the time the court found no duty to indemnify. The court observed that because the insurance policy language requires the insurer to defend on account of property damage, the court's previous determination that the insureds had not established the existence of an "occurrence" at the Farmington and Ottati & Goss sites precludes a continuing duty to defend. Moreover, case law supports the termination of the duty to defend where it has previously been shown that no duty to indemnify exists. Because such a showing was made by the insurers as to the Cardinal and Dover sites, the insurer has no duty to defend the policyholders against actions related to those sites. However, the court notes that the insurer would have a duty to defend if no previous determination concerning the duty to indemnify had been made. Moreover, since no suit has been filed with respect to any of the four sites, it is reasonable to finalize the insurer's duty to defend.

[Prior decisions in this case are published at 19 ELR 20911 and 21 ELR 20574.]

Counsel listed at 21 ELR 20574.