RECENT FEDERAL DECISIONS

June 2007

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District Court Construes Indemnity Clause to Include Costs Associated with Voluntary Remediation
Master Lock Company v. Hawn, ___F.Supp.2d___

After completing Illinois’ voluntary Site Remediation Program, plaintiff sued defendant, the former owner and operator of the site, under an environmental indemnity clause contained in the merger agreement. Called on to construe the terms “losses” and “cleanup costs,” the District Court held that the indemnity clause did not preclude recovery of voluntary but necessary remediation costs.