HECLA MINING COMPANY, a Delaware corporation, Petitioner, v. NEW HAMPSHIRE INSURANCE COMPANY and INDUSTRIAL INDEMNITY COMPANY, Respondents, 811 P.2d 1083

Summary

Petitioner insured was sued for contribution for alleged discharges. Respondent insurers provided a series of insurance policies covering petitioner. Petitioner contended that the discharge was neither an expected, or intended, consequence of its mining activity, and that although the discharge constituted pollution, the discharge was sudden and accidental; therefore respondents were liable for defense and indemnification. Respondents contended that the contamination was reasonably foreseeable, and thus was expected, and not an occurrence under the terms of petitioner's policies. Additionally, respondents alleged that even if the court determined the damage was unexpected and unintended, the discharge of pollution was not "sudden and accidental" and was therefore not covered under the insurance policies. The court determined that the phrase "sudden and accidental" was ambiguous and therefore had to be construed against the insurer to mean unexpected and unintended. As a result, ...