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Continental Insurance Cos. v. Northeastern Pharmaceutical & Chemical Co., Inc.

United States Court of Appeals for the Eighth Circuit
842 F.2d 977 (1988)


Northeastern Pharmaceutical & Chemical Company (defendant) manufactured a drug that contaminated a nearby farm. The Environmental Protection Agency (EPA) brought suit against Northeastern under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), seeking reimbursement to the United States government for the cleanup costs. At the time of the contamination, Northeastern was insured by Continental Insurance Companies (plaintiff). Northeastern’s policy stated that Continental would pay all monies Northeastern became legally obligated to pay “as damages.” Continental brought suit seeking a declaratory judgment as to its liability for Northeastern’s reimbursement of cleanup costs and moved for summary judgment. The district court granted Continental summary judgment, and Northwestern appealed.

Rule of Law


Holding and Reasoning (McMillian, J.)

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