AMERICAN MOTORISTS INSURANCE CO. v. ARTRA GROUP, INC., 338 Md. 560

Summary

Plaintiff was an insurer for defendant. Defendant requested that plaintiff defend and indemnify defendant in an action brought against it for hazardous waste contamination. Plaintiff alleged that it was not required to defend the action against defendant because the policy contained a provision that limited actions in pollution to those that were sudden and accidental. Plaintiff alleged that Maryland substantive law would govern the action. Although there was not a choice-of-law provision in the contract, the court held that Maryland law should govern the contract because the court was to apply the law of Illinois to determine the forum and Illinois law would have applied Maryland substantive law based on the most significant relationship choice-of-law rule. The court held that the actions against defendant were not sudden and accidental. Therefore, plaintiff did not have a duty to defend. The court reversed the appellate court and affirmed summary judgment for plaintiff.