The Problem: A landfill received numerous permit violations due to the offsite migration of methane and excessive odor issues. To remediate this, the landfill gas collection system was completely rebuilt, including the addition of a perimeter gas collection system. Litigation was commenced against the insured by the state and the local municipality, seeking injunctive relief, as well as fines and penalties. In addition, a neighboring commercial business sued the insured, seeking compensatory damages of more than $20M and punitive damages exceeding $70M.

The Response: XL Environmental Claims oversaw the remedial measures undertaken to make certain that the efforts were appropriate and performed in the most effective manner possible. Legal defense was also provided for the various claims that were asserted against the landfill operator. The proactive management of the litigation focused on resolving these claims without protracted litigation and defense costs. Subrogation opportunities against other potential third parties were also investigated.

The landfill's Pollution and Remediation Legal Liability (PARLL) (Coverage A –Pollution Legal Liability and Coverage B – Remediation Legal Liability) policy responded to cleanup and defense costs, as well as resultant third-party property damage in excess of the retention.

The Benefits: XL Environmental provided the insured with legal and technical expertise to successfully defend and resolve the third-party claims against it and to address the off-site pollution conditions in accordance with applicable law. By taking a very aggressive position in the remediation and defense efforts, the goal was to mitigate the potential for additional third-party claims and to keep the insured's total exposure within its available limits.