Environmental Liability Insurer Breached Duty To Defend In Bad Faith, Judge Says

( December 15, 2025, 10:21 AM EST) -- TACOMA, Wash. — An environmental liability insurer breached its duty to defend its insured in bad faith because an underlying water contamination suit alleges a potential for coverage under the policy at issue and the insurer initially acknowledged that there was a potential for coverage under the policy, a Washington federal judge said in granting the insured’s motion for summary judgment on breach of contract and bad faith claims....