Alabama Jury Awards $4.9 Million For Environmental Claims

In January, Alabama 10th Judicial Circuit Judge Edward L. Ramsey found that issues of fact exist with respect to whether Southern's notice was untimely, the owned property exclusion was applicable, sites were damaged by one cause or by separate "occurrences", and whether the attachment point of the excess policies was correct. Southern did not provide late notice to London insurers regarding the two sites or waive its claim to coverage, according to the jury. London claimed that Southern waived its right to bring claims under the policies when it advised them in 1996 that they could close their files on these claims.

Regarding the owned property exclusion, the jury found evidence that there was damage to other property than Southern's property. The jury concluded that London insures breached the contracts as of 1995 and awarded Southern $4,905,843.44 in environmental costs for the two sites.