Evaporation Pond Waste Discharge Covered

State of California v. Allstate Insurance Company, 45 Cal. 4th 1008, 201 P.3d 1147, 90 Cal. Rptr. 3d 1 (Mar. 9, 2009). Gauntlett & Associates, David A. Gauntlett for United Policyholders, Consumer Federation of America and Center for Community Action & Environment as Amici Curiae on behalf of Plaintiff and Appellant.

Judge Werdegar, speaking for a unanimous court, held that: "the relevant discharged with escape of waste from evaporation ponds on the site" and "intentional release of waste to mitigate damage was not excluded from coverage on basis that it was not accidental" . "[The] state was entitled to indemnity if it could show that sudden and accidental releases of waste were proximate causes of damage, disapproving Golden Eagle Refinery Co. v. Associated Internat. Ins. Co., 85 Cal.App.4th 1300, 102 Cal.Rptr.2d 834 and Lockheed Martin Corp. v. Continental Ins. Co., 134 Cal.App.4th 187, 35 Cal.Rptr.3d 799." Fact issues remained as to whether the water course exclusion applied to indemnity claims and whether the release of waste was accidental.