Class Action Lawsuit for UST Leak of MTBE into Potable Well

Acknowledgement to XL Environmental

THE CLAIM
An XL insured, a gas station, was contacted by the county health department following an odor/taste complaint by a customer who had purchased a beverage from the store. The insured’s potable well was tested, revealing methyl tertiary butyl ether (MTBE) in concentrations that were twice the state actionable level.

Investigation by the county health department linked the MTBE to a leak from the piping/dispenser system associated with underground storage tanks. A class action lawsuit was filed against the insured by local residents for a mix of claims including property damage, bodily injury and fear of injury.

THE RESPONSE
XL’s environmental claims counsel retained local defense counsel to represent and defend our insured’s interests. An experienced, local remediation consultant was also retained on the insured’s behalf to design a remediation system.

THE SOLUTION
A remediation technology was selected and implemented. A settlement was reached with respect to the class action litigation whereby certain residents’ homes were purchased, others received dollar settlement amounts and others received a settlement including medical monitoring costs.

The insured’s Pollution and Remediation Legal Liability Policy paid $1,200,000 to resolve the class action lawsuit on the insured’s behalf and remediate the insured’s property.

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