The Seventh Circuit recently affirmed the District Court’s grant of a Motion to Dismiss in Emergency Services Billing Corp., Inc. v. Allstate. In ESBC, the Court refused to expand CERCLA beyond its intended scope at the expense of automobile and homeowners’ insurers. ESBC was running a business model predicated on charging insureds and insurers thousands of dollars for post-accident environmental cleanups, based on the contention that CERCLA applies and pre-empts state laws (such as Indiana’s) capping recovery costs for Fire Departments responding to accidents and fires.
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