Suburban Water Systems and parent company SouthWest Water, which operate water and wastewater systems in several states including Texas and California, were hit with an insurance coverage lawsuit on Thursday in Texas Southern District Court. The case arises from the defendants’ discovery, which alleges that the water contains elevated levels of polyfluoroalkyl substances, also known as ”forever chemicals.” The suit, filed by Husch Blackwell on behalf of Allianz Underwriters, seeks a declaration that Allianz has no duty to defend or indemnify the defendants for remediation expenses because they’re not true “clean-up costs,” but instead are “for business purposes to improve the quality of their product.” Counsel have not yet appeared for the defendants. The case is 4:23-cv-02852, Allianz Underwriters Insurance Co. v. SouthWest Water Co. et al.

This suit was surfaced by Law.com Radar, a source for high-speed legal news and litigation updates personalized to your practice. Law.com Radar publishes daily updates on just-filed federal cases like this one. Click here to get started and be first to know about new suits in your region, practice area or client sector.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]