Recent State Decisions

April 2001

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California Appellate Court Requires Insured To Prove Amount of Damage Caused by Covered Event in order To Be Reimbursed for Clean-Up Costs under Insurance Policy
Golden Eagle Refinery Company, Inc. V. Associated International Insurance Company

Where general liability insurance policies exclude coverage for pollution unless it resulted from sudden and accidental events, and the policyholder is unable to prove which portion of the pollution at its site was caused by sudden and accidental events, a California appellate court has held that the policyholder has failed to prove the necessary element of causation under general contract law and is entitled to no indemnification under the insurance policies.