ELR Citation: ELR 20148
No(s). E037906 (Cal. App. 4th Dist. Jul 27, 2006)

An appellate court holds that an insurer has no duty to defend or indemnify a company in underlying actions concerning its unauthorized discharge of fill material into a creek. The discharges occurred after the company placed fill dirt along a road so that it could access a quarry. As a result of the discharges, the U.S. Environmental Protection Agency (EPA) issued an administrative order against the company, and the company's lessor filed a civil lawsuit against it for damaging the creek and surrounding property. The company then sought coverage from its insurer. The insurer, however, need not indemnify the company for the EPA administrative order because the EPA proceeding is not a "suit" within the scope of the policies. And because the pollution exclusion endorsements in the insurance policies exclude coverage for the company's activities, the insurer need not defend or indemnify the company in the civil proceedings.