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Barrett Paving Materials, Inc. v. Continental Ins. Co.

ELR Citation: 37 ELR 20123
Nos. Nos. 06-1951, -2017, (1st Cir., 05/30/2007)

The court upheld summary judgment against one insurance company and in favor of another insurance company in a dispute concerning the insurers' duties to defend a manufacturer against a third-party complaint for environmental cleanup costs. The lower court properly held that the first insurer had to share the manufacturer's defense costs because the policy potentially covers the underlying allegations. That insurer also had to pay the manufacturer's legal fees. But the allegations were beyond the scope of the second insurer's policy coverage. The second insurer's policy only applied in excess of an underlying primary liability insurance policy issued by yet another insurance company, and that policy has not been exhausted.