McGinnes Industrial Maintenance Corporation v. The Phoenix Insurance Company; The Travelers Indemnity Company

Summary

The Fifth Circuit considered whether EPA enforcement proceedings under CERCLA constitute a “suit” triggering an insurer’s duty to defend under commercial general liability policies. Following the Supreme Court of Texas’s answer to the certified question that such proceedings qualify as a suit, the court reversed the district court’s summary judgment for the insurers and remanded for further proceedings.

Holdings

1. The term suit in the policies includes CERCLA enforcement proceedings brought by the EPA, thereby triggering a duty to defend.

Questions Presented

1. Whether EPA enforcement proceedings under CERCLA constitute a suit within the meaning of the commercial general liability policies and therefore trigger the insurers' duty to defend.

Disposition

reversed_and_remanded