Who cleans up, when and how, and who pays are critical questions in the cleanup of pollution. Many companies identified by the government as parties responsible for past hazardous waste releases were insured under Comprehensive General Liability policies. In AIU Ins. Co. v. Superior Court, decided in 1990, the California Supreme Court unanimously held that that these Comprehensive General Liability policies cover the cost of complying with cleanup procedures under the Comprehensive Environmental Response, Compensation and Liability Act of 1980. Thus, insurers must pay for the cleanup costs of pollution by the companies they insure. This Casenote examines this decision, as well as the state of the law nationwide at the time of the decision. The author examines the impact and implications of the decision, and finds that the court appropriately supported legislative policy with this decision.
Deane S. Shokes,
AIU Ins. Co. v. Superior Court: Insurers Liable for Environmental Response Costs,
San Diego L. Rev.
Available at: https://digital.sandiego.edu/sdlr/vol28/iss3/7