RECENT FEDERAL DECISIONS

November 2008

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District Court Rules that General Liability Insurers Have a Duty to Defend when Sudden and Accidental Nature of Release Is Ambiguous
Industrial Enterprises, Inc. v. Penn America Insurance Co., ___ F.Supp.2d ___

On September 2, 2008, in Industrial Enterprises, Inc. v. Penn America Insurance Co., the U.S. District Court for the District of Maryland interpreted a common pollution liability exclusion and a “sudden and accidental” exception to that exclusion in a comprehensive general liability policy, and it reaffirmed Maryland’s requirement that insurers defend their insureds if the potential for coverage exists, even if that potential is remote.