Transamerica Insurance Company v. Duro Bag Manufacturing Company

KENNEDY, Circuit Judge.

In 1989, the Environmental Protection Agency (“EPA”) sued defendant, Duro Bag Manufacturing Company, seeking to hold it liable for the costs of cleaning up environmental damage at a Kentucky landfill. Defendant notified its insurer, plaintiff Trans-ameriea Insurance Company, of the suit and sought coverage. Plaintiff denied coverage and filed the instant declaratory judgment action, seeking a court order holding that the pollution exclusion clause contained in the policy bars coverage. The District Court granted summary judgment in favor of plaintiff, and defendant now…