N. CA judge rejects insurer’s motion to dimiss

Continental Casualty Co. was recently ordered to provide a defense for one of the companies they insured for several years after U.S. District Judge Susan Illston of the Northern District of California rejected their motion to dismiss.

Former owner of West Coast Scrap Producers Inc., Richard L. Bradley, filed a declaratory judgement against the insurer after they refused to provide a defense for the business in a personal injury complaint filed against both companies.  The complaint stated that contaminants from the scrap metal facility leaked into groundwater and eventually made their way into nearby homes’ drinking water.

Continental claimed that they were not insuring the scrap metal company when the injuries occurred, however the judge ruled that the insurance company is required to defend West Coast Scrap Producers because the possibly injurious actions occurred while the company’s policy was in effect.

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