Score one for the good guys — that is, if you occasionally root for insurance companies. ESBC was running a business model predicated on charging insureds and insurers thousands of dollars for post-accident environmental cleanups, based on the contention that CERCLA applies and pre-empts state laws (such as Indiana’s) capping recovery costs for Fire Departments responding to accidents and fires. When the insurance companies declined to pay these claims, ESBC sued. The District Court refused to expand CERCLA beyond its intended scope at the expense of automobile and homeowners’ insurers and granted the insurance companies’ Motion to Dismiss. The Seventh Circuit has now affirmed that decision in Emergency Services Billing Corp., Inc. v. Allstate Ins. Co.
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