Jerry's Steel Supply operated as a scrap metal and salvage facility at this Sunnyside property, with underground storage tanks — a 1,000-gallon diesel UST and a 500-gallon gasoline UST — installed prior to 1965. The tanks had been out of service for at least a decade before their removal on August 22, 1992, and the subsequent closure site assessment found gasoline and diesel fuel contamination in both soil and groundwater, with water samples exceeding MTCA cleanup levels for petroleum. The site is currently awaiting cleanup under Ecology's standard cleanup program. 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.
The petroleum contamination at this property traces directly to underground storage tanks installed more than two decades before 1986, during the era when occurrence-based Commercial General Liability policies routinely covered pollution events without effective exclusion. With confirmed gasoline and diesel contamination in soil and groundwater exceeding state cleanup standards, the property faces significant remediation costs that have yet to be incurred. Historical CGL carriers whose policies were in force during the pre-1965 tank installation and subsequent operational period may bear obligation to fund the cleanup work ahead.
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.