Milliken v. Fidelity & Casualty Co. of New York

HILL, Circuit Judge.

This diversity action was commenced in the court below by appellants to recover from appellee the costs and expenses which they incurred in defending three lawsuits brought against them for damages alleged to have been caused by pollution, i. e., the escape of salt water and oil from appellants’ oil and gas operations. The basis upon which appellants seek to recover is that appellee had a duty to defend the three lawsuits under the terms of a policy of insurance issued by it to them and, having refused to fulfill that duty, it is liable for the amounts expended by…