Gelman Sciences, Inc v. Fireman’s Fund Insurance Companies

This consolidated appeal stems from a declaratory action filed by Gelman Sciences, Inc. against its insurer, Fireman’s Fund Insurance Companies.

Gelman manufactures medical and scientific equipment. In January, 1986, the Washtenaw County Health Department notified it that area water supplies had been contaminated with 1,4 dioxane. Gelman uses the chemical in its manufacturing process and was identified as potentially responsible for the contamination.

Gelman notified Fireman’s which, on various grounds, refused to defend or indemnify. Gelman, acting alone in its defense, then made several very…