Arco Industries Corp. v. American Motorists Insurance

We granted leave in this case to determine whether an insurance company, American Motorists Insurance Company (amico), has the duty to indemnify its insureds, Arco Industries Corporation and Frederick C. Matthaei, Jr.,1 for costs it incurred in defending an action brought by the Department of Natural Resources to compel Arco to remedy chemical contamination at its manufacturing plant. Specifically, we must determine whether the chemical contamination at Ar-co’s plant between 1968 and 1974 was "expected or intended from the standpoint” of the insured.

At the conclusion of a bench trial before…