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Case Briefs

BY ALM Staff
July 29, 2013

Insurer Lacks Standing to Subrogate Under CERCLA

On March 15, the U.S. Court of Appeals for the Ninth Circuit held that an insurer lacked standing to bring a subrogation suit under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) because the insurer failed to meet statutory requirements. Chubb Custom Ins. Co. v. Space, 710 F.3d 946 (9th Cir. 2013). The insurer, Chubb, paid $2.4 million under an insurance policy to its insured, Taube-Koret Campus for Jewish Life, for environmental cleanup costs on its property.

The insurer then filed an action against several parties seeking subrogation under ” 107(a) and 112(c) of CERCLA and asserting state law claims for statutory indemnity,
negligence per se and strict liability. The district court dismissed the operative third amended complaint with prejudice, and the Ninth Circuit affirmed on appeal. Amicus curiae briefs were also submitted on behalf of an insurer and United Policyholders.

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