May 12, 2014

 The Eighth Circuit Court of Appeals held that a potentially responsible party (PRP) letter from the Environmental Protection Agency (EPA) to the insured under the Comprehensive Environmental Response, Compensation, and Liability Act was a "suit" within the meaning of the insured's commercial general liability (CGL) policies. This case is Land O' Lakes, Inc., v. Employers Insurance Company of Wausau, 728 F.3d 822 (8th Cir. 2013).

 Land O' Lakes, Inc. is a member-owned agricultural cooperative. Midland Cooperatives, Inc. sold a now dormant oil refinery in Cushing, Oklahoma to Hudson Oil Refinery Company. In 1982, Hudson Oil abandoned the refinery, and Land O' Lakes merged with Midland thereby acquiring the refinery. Land O' Lakes held CGL policies with Employers Mutual Liability Insurance Company of Wausau ("Wausau") and the Travelers Indemnity Company ("Travelers") (collectively, "the Insurers"). The EPA targeted Hudson Oil in a cleanup action and the Oklahoma Department of Environmental Quality (ODEQ) began to monitor the site. Then, in 1998, the EPA and the ODEQ detected problems involving hazardous materials and placed the refinery on the National Priorities List, thus designating the refinery as a Superfund site.