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2024 | OriginalPaper | Buchkapitel

Environmental Liabilities and Insurance Law in the United States

verfasst von : Valerie Fogleman

Erschienen in: Managing Environmental Risks through Insurance

Verlag: Springer Nature Switzerland

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Abstract

State common law in the United States (US) has long imposed liability for bodily injury and property damage caused by persons that expose individuals to pollutants as well as causing other harm to them. In the 1970s, the scope of liability for environmental damage was substantially increased when the US Congress enacted extensive permitting legislation for waste, water and air pollution. Among other things, the legislation required permit holders to clean up environmental damage caused by their operations. In 1980, the scope of environmental liabilities was increased again when Congress introduced a programme, called the Superfund programme, and liability for cleaning up historic land contamination that continued to pose a serious risk to human health and the environment. The legislation also introduced liability for restoring damage to natural resources.
Enforcement of the Superfund programme resulted in insureds being liable for many millions of dollars of costs for cleaning up the contamination. In turn, insureds claimed against their commercial general liability policies, resulting in massive litigation. Another result of the increased environmental legislation was the introduction of pollution exclusions in primary and excess general liability policies. In turn, various insurers developed environmental insurance policies that specifically provide cover for the liabilities as well as policies that provide evidence of mandatory financial security for specified environmental liabilities.
This chapter examines environmental liabilities in the US, insurance for them, and mandatory requirements for insurance policies and other financial security instruments and mechanisms.

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Fußnoten
1
Superseded areas of tort law are Liability for Physical and Emotional Harm (2010/2012), Apportionment of Liability (2000), Products Liability (1998), and Liability for Economic Harm (2020).
 
3
O’Neil v Picillo, 682 F. Supp. 706 (D. R.I. 1988), affirmed, 883 F.2d 176 (first Circuit 1989), certiorari denied, 493 U.S. 1071 (1990).
 
4
Jacques v Pioneer Plastics, Inc., 676 A.2d 504 (Me 1996).
 
5
See Cornell Law School, Legal Information Institute, ‘Abnormally Dangerous Activity’; https://​www.​law.​cornell.​edu/​wex/​abnormally_​dangerous_​activity#:​~:​text=​DEFINITION,is%20​exercised%20​by%20​all%20​actors (accessed on 10.05.2023).
 
6
Sections 519 and 520 of the Restatement of Torts refer to an ‘ultrahazardous’ activity.
 
7
Ibid.
 
8
Branch v Western Petroleum, Inc., 657 P.2d 267 (Utah 1982).
 
9
Rosenblatt v Exxon Company, 335 Md. 58, 642 A.2d 180 (1994).
 
10
Thompson v Mindis Metals, Inc., 692 So. 2d 805 (Ala. 1997).
 
12
Borland v Sanders Lead Company, 369 So. 2d 523 (Ala. 1979).
 
13
See Roisman and Wolff (2010), pp. 159–60.
 
14
33 United States Code ss 1251 et seq.
 
15
42 United States Code ss 6901 et seq.
 
16
Ibid., ss 7401 et seq.
 
17
Ibid., ss 300f et seq.
 
19
See, e.g., Rapanos v United States, 547 U.S. 715 (2006); see also US Environmental Protection Agency and US Army Corps of Engineers, Department of Defense, The Navigable Waters Protection Rule: Definition of ‘Waters of the United States’, 85 Federal Register 22,250 (21 April 2020), vacated and remanded by Pascua Yaqui Tribe v US Environmental Protection Agency, No. CV-20-00266-TUC-RM (D. Ariz. Aug. 30, 2021). The EPA and the US Army Corps of Engineers issued a new final rule with a revised broader definition of ‘waters of the United States’ on 8 September 2023. US Environmental Protection Agency and US Army Corps of Engineers, Department of Defense, Revised Definition of ‘Waters of the United States’, 8 Federal Register 61,964 (2023).
 
20
Federal sites are sites that are owned or operated by a department, agency or other body of the US including the Departments of Defense, Energy and the Interior. These bodies have a substantial role in cleaning up their facilities.
 
21
42 United States Code s 9631(a) (repealed).
 
22
US Environmental Protection Agency, Superfund: National Priorities List (NPL); https://​www.​epa.​gov/​superfund/​superfund-national-priorities-list-npl (accessed on 10.05.2023).
 
23
42 United States Code s 9601(9). The vast majority of proceedings under CERCLA involve facilities.
 
24
Ibid., s 9601(28).
 
25
Ibid., s 9601(22).
 
26
Ibid., s 9601(14).
 
27
33 United States Code ss 2701 et seq.
 
28
42 United States Code s 9601(21).
 
29
Ibid., s 9601(29); see, ibid., s 6903(3).
 
30
See, e.g., United States v CDMG Realty Company, 96 F.3d 706 (3d Circuit 1996) (hazardous substances at a closed landfill dispersed by drilling operations may be a disposal).
 
31
The term ‘treatment’ is defined by reference to its (very broad) meaning in RCRA. 42 United States Code s 9601(29) referring to ibid. s 6903(34).
 
32
Tanglewood East Homeowners v Charles-Thomas, Inc., 840 F.2d 1568 (fifth Circuit 1988).
 
33
42 United States Code s 9601(20)(A).
 
34
Ibid., s 9607(b).
 
35
Ibid., s 9601(35)(A).
 
36
Ibid., s 9601(40).
 
37
Ibid., s 9607(q)(1).
 
38
Ibid., s 9606(a).
 
39
The EPA and other federal administrative authorities and departments do not bring judicial actions themselves. Instead, the DOJ brings judicial actions on their behalf.
 
40
US Environmental Protection Agency, Civil Monetary Penalty Inflation Adjustment, 88 Federal Register 988 (6 January 2023).
 
41
42 United States Code s 9606(a).
 
42
Ibid., ss 9604(a), 9607.
 
43
Ibid., s 9607(c)(3).
 
44
Ibid., s 9613(h).
 
45
Ibid., s 9622(f)(1).
 
46
Ibid., s 9621(e)(2).
 
47
Ibid., s 9622(g).
 
48
Ibid., s 9613(f)(1).
 
49
Ibid., s 9613(f)(2).
 
50
Ibid., s 9601(16).
 
51
Ibid., s 9607(a)(4).
 
52
Ibid., s 9607(c)(1)(D).
 
53
Ibid., s 9607(f)(1).
 
54
43 Code of Federal Regulations s 11.15.
 
55
Idaho Department of Environmental Quality, Bunker Hill Superfund Site; https://​www.​deq.​idaho.​gov/​waste-management-and-remediation/​mining-in-idaho/​bunker-hill-superfund-site/​ (accessed on 10.05.2023).
 
57
US Environmental Protection Agency, Superfund Site: Bunker Hill Mining & Metallurgical Complex, Smelterville, Idaho, Cleanup Activities; https://​cumulis.​epa.​gov/​supercpad/​SiteProfiles/​index.​cfm?​fuseaction=​second.​cleanup&​id=​1000195#content (accessed on 10.05.2023). See, e.g., United States v Asarco, Inc., 214 F.3d 1104 (ninth Circuit 2000); United States v Asarco, Inc., 430 F.3d 972 (ninth Circuit 2005); US Department of Justice, Hecla Mining Company to Pay £263 Million in Settlement to Resolve Idaho Superfund Site Litigation and Foster Cooperation (13 June 2011); https://​www.​justice.​gov/​opa/​pr/​hecla-mining-company-pay-263-million-settlement-resolve-idaho-superfund-site-litigation-and; (accessed on 10.05.2023) US Department of Justice, Department Of Justice, EPA Reach Agreement with Two Idaho Mining Companies to Secure Wastewater Treatment and Remove a Barrier to New Mining Operations (12 March 2018); https://​www.​justice.​gov/​opa/​pr/​department-justice-epa-reach-agreement-two-idaho-mining-companies-secure-wastewater-treatment (accessed on 10.05.2023)The total amount for clean up and restoration from the ASARCO bankruptcy was $1.79 billion (EUR 1,784,531,550). See US Environmental Protection Agency, Case Summary: ASARCO 2009 Bankruptcy Settlement; https://​www.​epa.​gov/​enforcement/​case-summary-asarco-2009-bankruptcy-settlement (accessed on 10.05.2023).
 
58
US Department of the Interior, Trustees Settle Natural Resource Damage Claims at Bunker Hill Superfund Site in Idaho (19 January 2012); https://​www.​doi.​gov/​restoration/​news/​Coeur-dAlene-CD-entered#:​~:​text=​The%20​settling%20​companies%20​will%20​pay,the%20Coeur%20d’Alene%20Basin (accessed on 10.05.2023).
 
59
The McCarran-Ferguson Act, codified at 15 United States Code ss 1011–1015, provides that the ‘business of insurance … shall be subject to the laws of the several states which relate to the regulation or taxation of such business’).
 
60
See generally National Association of Insurance Commissioners, Surplus Lines (last updated 11 May 2022); https://​content.​naic.​org/​cipr-topics/​surplus-lines (accessed on 10.05.2023).
 
61
Jackson Township Municipal Utilities Authority v Hartford Accident & Indemnity Company, 186 N.J. Super. 156, 451 A.2d 990 (1982).
 
62
The discussion in the following section is drawn from Aylward (2018); https://​www.​morrisonmahoney.​com/​resource/​673-50-state-environmental-coverage-case-law-survey-2018 (accessed on 10.05.2023) and Fogleman (2005); chap. 12.
 
63
The word ‘suit’ was subsequently defined in the 1986 version of the CGL policy.
 
64
See AIU Insurance Company v Superior Court, 51 Cal. 3d 807, 274 Cal. Rptr. 820, 799 P.2d 1253 (1990); Hazen Paper Company v United States Fidelity & Guaranty Company, 407 Mass. 689, 555 N.E.2d 576 (1990); Minnesota Mining & Manufacturing Company v Travelers Indemnity Company, 457 N.W.2d 175 (Minn. 1990); C.D. Spangler Construction Company v Industrial Crankshaft & Engineering Company, 326 N.C. 133, 388 S.E.2d 557 (1990); Boeing Company v Aetna Casualty & Surety Company, 113 Wash. 2d 869, 784 P.2d 507 (1990).
 
65
Public Service Company of Colorado v Wallis & Companies, 986 P.2d 814 (Colo. 1999).
 
66
E.I. du Pont de Nemours & Company v Allstate Insurance Company, 693 A.2d 1059 (Del. 1997).
 
67
Reed v Auto-Owners Insurance Company, 667 S.E.2d 90 (Ga. 2008).
 
68
Doe Run Resources Corporation v American Guarantee & Liability Insurance Company, 531 S.W.3d 508 (Mo. 2017).
 
69
Gainsco Insurance Company v Amaco Production Company, 53 P.3d 1051 (Wyo. 2002).
 
70
Porterfield v Audubon Indemnity Company, 956 So. 2d 789 (Ala. 2002).
 
71
United States v Maryland Bank & Trust, 632 F. Supp. 573 (D. Md. 1986).
 
72
US Environmental Protection Agency, Handbook of Tools for Managing Federal Superfund Liability Risks at Brownfields and Other Sites (EPA 330-B-98-001, November 1998).
 
75
National Association of Insurance Commissioners, ‘Environmental insurance’ (last updated 23 June 2022); https://​content.​naic.​org/​cipr-topics/​environmental-insurance (accessed on 10.05.2023).
 
77
Much of this section on the types of environmental insurance policies is drawn from Fogleman (2020); https://​ec.​europa.​eu/​environment/​legal/​liability/​studies.​htm (accessed on 10.05.2023).
 
78
Much of this section on mandatory financial security requirements is drawn from Fogleman (2020); https://​ec.​europa.​eu/​environment/​legal/​liability/​index.​htm (accessed on 10.05.2023).
 
79
49 United States Code ss 31131 et seq.
 
80
Ibid., s 31139(d).
 
81
49 Code of Federal Regulations s 171.8.
 
82
49 United States Code s 31139(d).
 
83
49 Code of Federal Regulations s 387.5.
 
84
49 United States Code s 31139(f)(1).
 
85
See generally US Environmental Protection Agency, Financial Assurance Requirements for Hazardous Waste Treatment, Storage and Disposal Facilities; https://​www.​epa.​gov/​hwpermitting/​financial-assurance-requirements-hazardous-waste-treatment-storage-and-disposal (accessed on 10.05.2023).
 
86
40 Code of Federal Regulations s 264.117(a)(1).
 
87
Ibid., s 264.143(a) or s 265.143(a).
 
88
Ibid., ss 264.143(b), (c) or s 265.143(b).
 
89
Ibid., s 264.143(d) or s 265.143(c).
 
90
Ibid., s 264.143(e) or s 265.143(d).
 
91
Ibid., s 264.143(f) or s 265.143(e).
 
92
Ibid., s 264.143(f) or s 265.143(e).
 
93
See ‘RCRA Subtitle C Financial Assurance: Instrument Review’, ASTSWMO Training Conference, Oklahoma City, OK, 15 August 2017; http://​astswmo.​org/​files/​Meetings/​2017/​HWMM_​Workshop/​Presentations/​Pease.​pdf (accessed on 10.05.2023).
 
94
40 Code of Federal Regulations s 264.147(a).
 
95
42 United States Code s 6924(t)(2).
 
96
40 Code of Federal Regulations s 264.147.
 
97
42 United States Code s 6991(7); see, ibid., s 9601(14).
 
98
Ibid., s 6991b(d).
 
99
40 Code of Federal Regulations s 280.92.
 
100
Ibid.
 
101
Ibid., s 280.93(a).
 
102
Ibid., s 280.93(b).
 
103
Ibid., ss 280.95 to 280.03; see, ibid., s 280.94.
 
104
Ibid., s 280.97.
 
105
Ibid.
 
106
Office of Site Remediation Enforcement (2015), pp. 6–7; https://​www.​epa.​gov/​sites/​production/​files/​2015-04/​documents/​fa-guide-2015.​pdf (accessed on 10.05.2023).
 
Literatur
Zurück zum Zitat AIU Insurance Company v Superior Court, 51 Cal. 3d 807, 274 Cal. Rptr. 820, 799 P.2d 1253 (1990) AIU Insurance Company v Superior Court, 51 Cal. 3d 807, 274 Cal. Rptr. 820, 799 P.2d 1253 (1990)
Zurück zum Zitat Boeing Company v Aetna Casualty & Surety Company, 113 Wash. 2d 869, 784 P.2d 507 (1990) Boeing Company v Aetna Casualty & Surety Company, 113 Wash. 2d 869, 784 P.2d 507 (1990)
Zurück zum Zitat Borland v Sanders Lead Company, 369 So. 2d 523 (Ala. 1979) Borland v Sanders Lead Company, 369 So. 2d 523 (Ala. 1979)
Zurück zum Zitat Branch v Western Petroleum, Inc., 657 P.2d 267 (Utah 1982) Branch v Western Petroleum, Inc., 657 P.2d 267 (Utah 1982)
Zurück zum Zitat C.D. Spangler Construction Company v Industrial Crankshaft & Engineering Company, 326 N.C. 133, 388 S.E.2d 557 (1990) C.D. Spangler Construction Company v Industrial Crankshaft & Engineering Company, 326 N.C. 133, 388 S.E.2d 557 (1990)
Zurück zum Zitat Doe Run Resources Corporation v American Guarantee & Liability Insurance Company, 531 S.W.3d 508 (Mo. 2017) Doe Run Resources Corporation v American Guarantee & Liability Insurance Company, 531 S.W.3d 508 (Mo. 2017)
Zurück zum Zitat E.I. du Pont de Nemours & Company v Allstate Insurance Company, 693 A.2d 1059 (Del. 1997) E.I. du Pont de Nemours & Company v Allstate Insurance Company, 693 A.2d 1059 (Del. 1997)
Zurück zum Zitat Gainsco Insurance Company v Amaco Production Company, 53 P.3d 1051 (Wyo. 2002) Gainsco Insurance Company v Amaco Production Company, 53 P.3d 1051 (Wyo. 2002)
Zurück zum Zitat Hazen Paper Company v United States Fidelity & Guaranty Company, 407 Mass. 689, 555 N.E.2d 576 (1990) Hazen Paper Company v United States Fidelity & Guaranty Company, 407 Mass. 689, 555 N.E.2d 576 (1990)
Zurück zum Zitat Jackson Township Municipal Utilities Authority v Hartford Accident & Indemnity Company, 186 N.J. Super. 156, 451 A.2d 990 (1982) Jackson Township Municipal Utilities Authority v Hartford Accident & Indemnity Company, 186 N.J. Super. 156, 451 A.2d 990 (1982)
Zurück zum Zitat Jacques v Pioneer Plastics, Inc., 676 A.2d 504 (Me 1996) Jacques v Pioneer Plastics, Inc., 676 A.2d 504 (Me 1996)
Zurück zum Zitat Minnesota Mining & Manufacturing Company v Travelers Indemnity Company, 457 N.W.2d 175 (Minn. 1990) Minnesota Mining & Manufacturing Company v Travelers Indemnity Company, 457 N.W.2d 175 (Minn. 1990)
Zurück zum Zitat O’Neil v Picillo, 682 F. Supp. 706 (D. R.I. 1988), affirmed, 883 F.2d 176 (1st Circuit 1989), certiorari denied, 493 U.S. 1071 (1990) O’Neil v Picillo, 682 F. Supp. 706 (D. R.I. 1988), affirmed, 883 F.2d 176 (1st Circuit 1989), certiorari denied, 493 U.S. 1071 (1990)
Zurück zum Zitat Porterfield v Audubon Indemnity Company, 956 So. 2d 789 (Ala. 2002) Porterfield v Audubon Indemnity Company, 956 So. 2d 789 (Ala. 2002)
Zurück zum Zitat Public Service Company of Colorado v Wallis & Companies, 986 P.2d 814 (Colo. 1999) Public Service Company of Colorado v Wallis & Companies, 986 P.2d 814 (Colo. 1999)
Zurück zum Zitat Rapanos v United States, 547 U.S. 715 (2006) Rapanos v United States, 547 U.S. 715 (2006)
Zurück zum Zitat Reed v Auto-Owners Insurance Company, 667 S.E.2d 90 (Ga. 2008) Reed v Auto-Owners Insurance Company, 667 S.E.2d 90 (Ga. 2008)
Zurück zum Zitat Rosenblatt v Exxon Company, 335 Md. 58, 642 A.2d 180 (1994) Rosenblatt v Exxon Company, 335 Md. 58, 642 A.2d 180 (1994)
Zurück zum Zitat Tanglewood East Homeowners v Charles-Thomas, Inc., 840 F.2d 1568 (5th Circuit 1988) Tanglewood East Homeowners v Charles-Thomas, Inc., 840 F.2d 1568 (5th Circuit 1988)
Zurück zum Zitat Thompson v Mindis Metals, Inc., 692 So. 2d 805 (Ala. 1997) Thompson v Mindis Metals, Inc., 692 So. 2d 805 (Ala. 1997)
Zurück zum Zitat United States v Asarco, Inc., 214 F.3d 1104 (9th Circuit 2000) United States v Asarco, Inc., 214 F.3d 1104 (9th Circuit 2000)
Zurück zum Zitat United States v Asarco, Inc., 430 F.3d 972 (9th Circuit 2005) United States v Asarco, Inc., 430 F.3d 972 (9th Circuit 2005)
Zurück zum Zitat United States v CDMG Realty Company, 96 F.3d 706 (3d Circuit 1996) United States v CDMG Realty Company, 96 F.3d 706 (3d Circuit 1996)
Zurück zum Zitat United States v Maryland Bank & Trust, 632 F. Supp. 573 (D. Md. 1986) United States v Maryland Bank & Trust, 632 F. Supp. 573 (D. Md. 1986)
Zurück zum Zitat McCarran-Ferguson Act, codified at 15 United States Code, Sections 1011-1015 McCarran-Ferguson Act, codified at 15 United States Code, Sections 1011-1015
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Zurück zum Zitat US Environmental Protection Agency and US Army Corps of Engineers, Department of Defense, Revised Definition of ‘Waters of the United States’, 86 Federal Register 69,372 (2021) US Environmental Protection Agency and US Army Corps of Engineers, Department of Defense, Revised Definition of ‘Waters of the United States’, 86 Federal Register 69,372 (2021)
Zurück zum Zitat American Law Institute (1930) Restatement (first) of torts. American Law Institute, Philadelphia American Law Institute (1930) Restatement (first) of torts. American Law Institute, Philadelphia
Zurück zum Zitat American Law Institute (1965) Restatement (second) of torts. American Law Institute, Philadelphia American Law Institute (1965) Restatement (second) of torts. American Law Institute, Philadelphia
Zurück zum Zitat Fogleman V (2005) Environmental liabilities and Insurance in England and the United States. Witherby & Co Ltd, Livingston Fogleman V (2005) Environmental liabilities and Insurance in England and the United States. Witherby & Co Ltd, Livingston
Zurück zum Zitat US Environmental Protection Agency (November 1998) Handbook of Tools for Managing Federal Superfund Liability Risks at Brownfields and Other Sites (EPA 330-B-98-001) US Environmental Protection Agency (November 1998) Handbook of Tools for Managing Federal Superfund Liability Risks at Brownfields and Other Sites (EPA 330-B-98-001)
Zurück zum Zitat Roisman AZ, Wolff A (2010) Trespass by pollution: remedy by mandatory injunction. Fordham Environmental Law Review 21(1):157 Roisman AZ, Wolff A (2010) Trespass by pollution: remedy by mandatory injunction. Fordham Environmental Law Review 21(1):157
Metadaten
Titel
Environmental Liabilities and Insurance Law in the United States
verfasst von
Valerie Fogleman
Copyright-Jahr
2024
DOI
https://doi.org/10.1007/978-3-031-47602-0_6

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