The U.S. Court of Appeals for the Second Circuit has decided in favor of an insured over its work installing a mercury-removal system in a wastewater plant that caught fire twice. The case is Suez Treatment Sols., Inc. v. ACE Am. Ins. Co., 2022 U.S. Dist. LEXIS 59044.

Suez Treatment Solutions (Suez) had insurance coverage under two separate insurance policies, a "Contractors Pollution Liability and Errors & Omission Insurance Policy" provided by Chubb subsidiary ACE American Insurance Company (Chubb), and a Commercial General Liability policy provided by Liberty Mutual Fire Insurance Company (Liberty).

Suez performed work for High Point, North Carolina to upgrade the facilities at its wastewater treatment plant. After installation, a serious leak was discovered in the system, forcing the system to shut down for weeks-long repairs. According to the underlying complaint, Suez failed to instruct High Point on how the system should be monitored during the shutdown and two separate fires occurred at the facility.