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West Bend Mutual Insurance Co. v. United States Fidelity and Guaranty Co.

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ARGUED DECEMBER 9, 2009

Before FLAUM, WILLIAMS, and SYKES, Circuit Judges.

Plaintiff-appellant West Bend Mutual Insurance Company (“West Bend”) appeals from the grant of summary judgment in favor of appellees, who consist of a group of insurance companies that includes the United States Fidelity and Guaranty Company (“Fidelity”) and Federated Mutual Insurance Company (“Federated”). West Bend initially sued the defendants for breach of contract because Federated declined to defend a mutual insured in a class action alleging that insured’s gas station contaminated groundwater in a residential neighborhood. The case revolves around whether the pollution exclusion contained in Federated’s policy effectively limited coverage for gasoline spills under Indiana law. The district court found that a clause in Federated’s policy excluded coverage for this type of claim and granted summary judgment in favor of Federated, Fidelity, and other insurers. West Bend now appeals this judgment as it applies to Federated.

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