Boeing Co. v. Aetna Casualty and Surety Co.
Washington Supreme Court
784 P.2d 507 (1990)
The EPA cleaned up a hazardous waste site and sought reimbursement from Boeing (plaintiff) under CERCLA, which makes those who release hazardous substances liable for government cleanup costs. Boeing's comprehensive general-liability policy with Aetna (defendant) covered amounts Boeing became obligated to pay "as damages," a term the policy left undefined. Boeing sued Aetna for coverage, and Aetna argued CERCLA response costs were restitution, not damages. The question was certified to the Washington Supreme Court.
Whether response costs incurred under CERCLA qualify as "damages" within the meaning of a comprehensive general-liability insurance policy to the extent the costs arise from property damage.