RECENT FEDERAL DECISIONS

September 2003

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Eighth Circuit Rejects Insureds’ Attempt to Relitigate Insurance Coverage for Groundwater Contamination where It Uncovered New Evidenece of an “Accidental” Cause
Liberty Mut. Ins. Co. v. FAG Bearings Corp.

On July 10, 2003, the Eighth Circuit Court of Appeals affirmed a District Court decision to grant summary judgment to plaintiff Liberty Mutual Insurance Company (Liberty), finding: (1) that defendant FAG Bearings Company (FAG) was precluded from relitigating the relevant issues regarding coverage because they had been decided in an earlier action between Liberty and FAG, (2) alternatively, that the liability insurance policy did not cover the alleged acts potentially giving rise to FAG’s liability in the underlying suits, and (3) that the insurance policy did not create a duty to defend in administrative proceedings.