The U.S. Court of Appeals for the Seventh Circuit has sought guidance from the Illinois Supreme Court in a pivotal case that could see legal defense costs exceed $150 million. This case centers around whether National Union Fire Insurance Co. of Pittsburgh must defend and indemnify Griffith Foods International and Sterigenics. The companies are embroiled in litigation linked to allegations of releasing industrial pollutants that have reportedly increased cancer rates in Willowbrook, Illinois.
The Seventh Circuit’s ruling highlights significant ramifications for the insurance industry depending on how the state court interprets the policy’s pollution exclusion. If the Illinois Supreme Court deems the exclusion applicable, the insurer may not be required to provide defense in the case, potentially altering the financial responsibilities drastically.
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