A major division of a large municipality sought cost recovery under an existing pollution legal liability (PLL) policy. This $100 million policy covered hundreds of sites over a 20-year period. Numerous policy conditions and exclusions were at issue. The insurer stopped paying on the policy once claims had exceeded the premium amount.
Our experts were engaged by the insured once the matter entered into litigation and the firm played a fundamental role in achieving a successful settlement. During the course of the engagement, we reviewed costs submitted to the insurer and developed a comprehensive set of costs covered by the policy, including incurred past costs and probabilistically modeled future costs to demonstrate that the limits of the policy would be exhausted.
In addition, we calculated a significant amount of prejudgment interest for unpaid claims that were submitted to the insurer. Our experts also addressed certain defenses claimed by the insurer, including voluntary payments, insufficient notice and failure to disclose material information.
We summarized our findings in an expert report that was submitted as part of mediation. Our experts actively participated obtaining a settlement of over 85 percent of the policy limits.