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Verlan, Ltd. v. John L. Armitage & Co.

Citation: 19 ELR 20330
No. No. 87 C 5121, 695 F. Supp. 955/(N.D. Ill., 09/06/1988)

The court, applying Illinois law, holds that claims for response costs under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) are not "damages" under a comprehensive general liability insurance policy. CERCLA cost recovery actions do not seek damages, but seek the equitable remedy of restitution. A narrow construction of the term "damages" is consistent with CERCLA's statutory scheme, which distinguishes between response costs and natural resource damages.

Counsel for Plaintiff
Michael W. Rathsack
77 W. Washington St., Chicago IL 60602
(312) 726-5433

Counsel for Defendant
Andrew H. Perellis
Gessler, Flynn, Laswell, Fleischmann, Hughes & Socol, Ltd.
Three First National Plaza, Ste. 2300, Chicago IL 60602
(312) 580-0100