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John Sexton Sand & Gravel Corp. v. National Union Fire Insurance Co.

ELR Citation: 45 ELR 20242
Nos. 14-cv-9827, (N.D. Ill., 12/11/2015) (Coleman, J.)

A district court held that an insurance company need not defend the owner of a landfill in an underlying CERCLA suit for recovery costs. The policy provided coverage for "wrongful entry," and the owner argued this provision applied because the underlying complaint alleges that odors, gas, and hazardous substances migrated from the landfill onto other property. But wrongful entry coverage only triggers a duty to defend if there is a nexus between the CERCLA response costs sought and the damages incurred. Because no such nexus can be inferred from the underlying complaint, the insurer has no duty to defend.