Appeals Court Liberally Construes Coverage for Class Action Defense

The vagaries of toxic groundwater migration and the fact the homes at issue in a lawsuit may not even have existed during the policy period were not enough to preclude coverage for defense costs, in a case recently decided by the Court of Appeals for the Second Circuit. This outcome should not be a surprise, the writer says. Defendants in a class action should carefully review their liability insurance policies as soon as they receive a complaint, and immediately provide notice of a claim if there is any potential for coverage.