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Frontier Oil Corp. v. RLI Ins. Co.

ELR Citation: 37 ELR 20201
Nos. No. B189158, (Cal. App. 2d Dist., 08/06/2007)

A California appellate court reversed a lower court's grant of summary judgment in favor of an insurance company in a case involving several personal injury actions arising from the operation of an oil and gas production facility next to Beverly Hills High School. The complaints allege that hazardous substances were "spilled, emitted, released, [and] discharged" into the environment. They also allege that the operations resulted in "releases, discharges, fugitive emissions, leaks and spills." Hence, the complaints allege damage of a nature and kind covered by the policy. Nor do the allegations foreclose the possibility that the damage was caused by a sudden and accidental release. Therefore, the facts alleged were sufficient to create a potential for coverage giving rise to a duty to defend under California law.