Abstract
Property owners operated a wood treatment facility comprising 20 acres of land in Arkansas. For about 20 years, until 1985, they treated wood products with creosote, pentachlorophenol, and other chemical preservatives. It was standard operating procedure to wash down the treatment cylinders and then spread the chemical waste to control weeds and dust. After an investigation into alleged environmental contamination, the State of Arkansas Environmental Protection Agency filed a complaint against the owners seeking a permanent injunction to cease and abate pollution of the state's waters and to remove the wastes at the site. The US Environmental Protection Agency (USEPA) filed a similar action. The federal appeals court concluded that cleanup costs were not encompassed within the meaning of the word “damages” in the standard comprehensive general liability insurance policy.
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