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Charter Int'l Oil Co. v. Travelers Cas. & Sur. Co.

ELR Citation: 38 ELR 20156
Nos. No. 06-324, (D.R.I., 06/09/2008)

A district court held that an oil company's claims against its insurer for the costs of cleaning up and redeveloping a parcel of land on the shore of the Sakonnet River in Rhode Island under a 1992 consent agreement are not time barred. Depending on whether Massachusetts or Rhode Island law applies, the insurer argued that the company's cause of action expired either 10 years or 6 years after the consent agreement was executed. But the insurance policy contains a "no action clause" that restrains the company, in the event that it incurs a liability, from bringing an action against the insurer until the amount of the insured's obligation to pay is "finally determined." Therefore, the company's cause of action did not accrue until May 2002, when the company received certification that the cleanup was complete.