Royal Insurance Company of America American Employers Insurance Co. v. Kirksville College of Osteopathic Medicine, Inc.

LOKEN, Circuit Judge.

Kirksville College of Osteopathic Medicine, Inc. (“Kirksville”), was sued by its neighbor, Lewistown Heet Gas Co. (“Lew-istown”), for damages caused by a ruptured underground cistern. Kirksville’s liability insurers, Royal Insurance Company of America and American Employers Insurance Company (collectively, “Royal”) filed this diversity declaratory judgment action, seeking a ruling they had no duty to defend or indemnify Kirksville because of the absolute pollution exclusions in their policies. In a prior appeal, we held that the insurers breached their duty to defend a…