Oil Spill Case – Won Insurer Reimbursement for Client Property Owners and Tenants

Quadrino Schwartz attorney Brad Schlossberg obtained summary judgment against an insurer for the defense costs of an expensive year-long case brought by the State of New York against several owners of real property and their gasoline station tenants for the costs of remediation of a gasoline spill. The source of the spill was unknown but it was alleged by the State to have been discharged from several gasoline stations, including the gasoline station on the real property owned by Mr. Schlossberg’s client. Because the source of the spill was questionable, the insurer denied coverage on the grounds that there was no “confirmed release” as required under the terms of the policy covering the underground storage tanks located on the premises. Mr. Schlossberg successfully obtained coverage upon the grounds that the duty to defend was greater than the duty to indemnify and the insurer had to provide a defense if there was the possibility of liability under the policy. After trial, the insurer was required to indemnify the insured for any loss assigned to it.