A U.S. District Court determined that Illinois National Insurance Co. must pay Sunoco $50 million in insurance coverage for pending lawsuits over groundwater contamination caused by a gasoline additive manufactured by the oil company

Risk Management, Nov, 2005

A U.S. District Court determined that Illinois National Insurance Co. must pay Sunoco $50 million in insurance coverage for pending lawsuits over groundwater contamination caused by a gasoline additive manufactured by the oil company. The additive, known as MBTE, has recently been the subject of various legal claims alleging that manufacturers defectively designed a harmful product and then misled the public about its dangers.

Illinois National had argued that its policy was not triggered because the more than 70 suits faced by Sunoco should be considered separate occurrences. However, the court found that the suits arose from a common cause and therefore constituted one occurrence.