Cinergy Corp. v. Associated Elec. & Gas Ins. Servs., Ltd.

The court held that a lower court properly denied power companies' motions to compel their insurer to pay all past and future defense costs incurred in responding to a federal lawsuit under the Clean Air Act. The underlying claim, brought by the federal government, three states, and several environmental groups, alleged that the companies discharged emissions in excess of their permits, resulting in wide-spread harm to public health and the environment. Specifically, they sought to compel the companies to install equipment to reduce future emissions of pollutants and to prevent future environmental harm. Because the insurance policies do not provide coverage for the costs of installing such equipment, the companies seek relief more extensive than that to which they are entitled. The lower court, therefore, properly denied the companies' motion for partial summary judgment.