Texas Ruling to Impact Policyholders Facing EPA Action

The Texas Supreme Court last week found in favor of McGinnes Industrial Maintenance Corp., the predecessor of Waste Management Inc., when it ruled that a U.S. Environmental Protection Agency proceeding constitutes a suit that activates an insurer’s duty to defend. McGinnes was involved in a dispute with its insurer over more than $2 million in defense costs and fines resulting from an EPA action under the Comprehensive Environmental Response Compensation and Liability Act for illegally dumping the chemical dioxin in the 1960s. The Texas decision has broad implications for policyholders with past and future environmental claims, as Insurance Recovery & Advisory senior associate Tamara Bruno explained to Law360. Read the full story here (subscription required).