The Allocation of Environmental Investigation Costs between the Defense and Indemnity Obligations under General Liability Policies

摘要

For policyholders respondingto administrative demands of federal or state environmental agencies, the allocation of environmental consultant costs between a carrier's defense and indemnity obligations is a frequent source of disagreement. Likely due to the fact-sensitive nature of such disagreements, existing case law lacks consistency in the analysis of such issues. This article analyzes different legal standards adopted by courts to analyze this issue. Although each court recognizes the fact-intensive nature of the inquiry, some courts are quite detailed in their analysis while others simply seek to achieve a sense of "rough justice." As a result, attorneys involved in such disputes must have both an understanding of the specific legal standards employed by the courts as well as an understanding of the specific facts that may ultimately tip the scales.