This industrial property in Linn County was occupied from 1970 to 1975 by a scissors manufacturer that used chlorinated solvents — tetrachloroethylene (PCE) and trichloroethylene (TCE) — in its production process. Very high concentrations of PCE were detected in groundwater at the property, and Oregon DEQ identified this site as the primary source of regional groundwater contamination in the Sweet Home area, where chlorinated solvents were found in drinking water wells in 1992 and affected domestic wells were connected to municipal water supply between 1998 and 2000. Significant remediation work has been performed — including removal of 1,173 tons of contaminated soil in 1996 and a bio-barrier injection in 2004 — but no No Further Action determination has been issued, the site remains listed, and ongoing groundwater monitoring continues through the Sweet Home Area Wide sampling program. That history could support an insurance coverage claim against the carriers who issued policies more than 40 years ago — coverage that could help fund the cleanup ahead.
Pre-1986 Commercial General Liability (CGL) policies were occurrence-based and did not contain an effective pollution exclusion in Oregon — and those policies may provide coverage that remains enforceable today. 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.
The contamination at this property originated from solvent-based manufacturing operations that ran from 1970 to 1975, placing the entire period of contaminating activity well before 1986. Because Oregon DEQ has not issued a No Further Action determination and groundwater monitoring continues across the broader Sweet Home area, the investigation, remediation, and compliance costs that lie ahead are the type of future obligations that historical pre-1986 carriers may be required to fund.
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.