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Undiscovered Gas Spill Considered Sudden Discharge
Gridley Associates owned a self‐service gasoline station. Between November 1985 and February 1986, the station recorded substantial discrepancies between the volume of gasoline it actually sold and the volume it had purchased. Examination revealed the pipe that connected a storage tank with the gasoline dispensers was broken. The leak was repaired; however, large quantities of gasoline were discovered the following months on adjacent property. Thereafter, governmental agencies required Gridley to undertake an extensive cleanup program. Gridley was covered under a comprehensive general liability (CGL) insurance policy issued by Transamerica that covered pollution damage except for a sudden and accidental discharge. Initially, Transamerica accepted liability and paid Gridley more than $23,000 for cleanup costs, but subsequently it reversed its position and advised Gridley that cleanup costs were not covered because of the policy exclusion. Gridley sued and won in the trial court.
Undiscovered Gas Spill Considered Sudden Discharge
Gridley Associates owned a self‐service gasoline station. Between November 1985 and February 1986, the station recorded substantial discrepancies between the volume of gasoline it actually sold and the volume it had purchased. Examination revealed the pipe that connected a storage tank with the gasoline dispensers was broken. The leak was repaired; however, large quantities of gasoline were discovered the following months on adjacent property. Thereafter, governmental agencies required Gridley to undertake an extensive cleanup program. Gridley was covered under a comprehensive general liability (CGL) insurance policy issued by Transamerica that covered pollution damage except for a sudden and accidental discharge. Initially, Transamerica accepted liability and paid Gridley more than $23,000 for cleanup costs, but subsequently it reversed its position and advised Gridley that cleanup costs were not covered because of the policy exclusion. Gridley sued and won in the trial court.
Undiscovered Gas Spill Considered Sudden Discharge
1993-01-01
1 pages
Article (Journal)
Electronic Resource
English
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