This property has served as a cargo and shipping terminal since at least 1952, acquired by the Port of Seattle in 1970 and used as a container yard since 1975. Multiple underground storage tanks — including a 5,000-gallon gasoline tank and a 2,000-gallon diesel tank removed in 1991, plus four inactive heating oil USTs permanently closed in place — leaked petroleum into the surrounding soil and waterway sediments. Cleanup under the Standard Cleanup program has included extensive soil excavation totaling hundreds of cubic yards, UST removals, dredging and capping of contaminated waterway sediments, installation of a stormwater treatment system, and ongoing contaminated media management spanning multiple years. That history could support an insurance cost recovery claim against carriers who issued insurance policies 40+ years ago.
Pre-1986 Commercial General Liability (CGL) policies were occurrence-based and did not contain an effective pollution exclusion in Washington. If contamination occurred while those policies were active, those historical insurance carriers may still have a legal obligation to fund the cleanup costs, even if the business closed or the property changed hands.
Petroleum storage infrastructure at this terminal was installed and operated decades before 1986, during the era when occurrence-based Commercial General Liability policies carried no effective pollution exclusion in Washington. The contamination now being remediated — petroleum hydrocarbons from leaking USTs that were in service through at least the mid-1980s — is the product of slow, continuous releases tied directly to those pre-1986 operations. The substantial remediation expenditures already incurred, and cleanup costs still accumulating, represent obligations the historical carriers who covered the terminal during that window may be required both to reimburse and to fund going forward.
Restorical's role is to locate viable historical policies, determine whether a successful coverage claim is possible, and assist our clients and their legal counsel to obtain insurance coverage. Restorical then manages the claim, including accounting, to ensure the cleanup is funded in a timely manner.
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Contact UsThis analysis is preliminary and based on publicly available records. Restorical Research is not a law firm and does not provide legal advice.