Colonial Gas Co. v. Aetna Casualty & Surety Co.

MEMORANDUM AND ORDER

WOODLOCK, District Judge.

I

The Colonial Gas Company is a Massachusetts public utility; Aetna Casualty & Surety Company, a Connecticut corporation, is Colonial’s general liability insurance carrier. When Aetna denied coverage of a $600,000 claim made by Colonial, Colonial filed this breach of contract action.

In 1987, Colonial paid $600,000 to a trust fund (“UFFI Trust”) administered by the Massachusetts Department of Public Health. The UFFI Trust, established by statute, is intended to compensate owners of urea-formaldehyde foam insulated homes. M.G.L. c. Ill, § 5;…