Johnson Controls, Inc., Plaintiff-Appellant-Petitioner v. Employers Insurance of Wausau, a Mutual Company (f/N/A…

Summary

The Wisconsin Supreme Court overruled its prior environmental-insurance precedent and held that CERCLA response costs for restoring or remediating property are covered damages under standard CGL policies, subject to other policy exclusions. It also held that a CERCLA potentially responsible party letter from the EPA or an equivalent state agency is the functional equivalent of a suit and triggers the insurer's duty to defend when the claim is otherwise covered. The court reversed the court of appeals and remanded for resolution of remaining exclusions and factual issues. Justice Crooks concurred in favor of overruling the prior precedent, while Justice Wilcox, joined by Justice Bradley, dissented based principally on stare decisis and reliance interests.