Chapter 783 Oregon Laws 1999
Session Law
AN ACT
SB 1205
Relating to actions to
determine insurance coverage for environmental contamination; and declaring an
emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Sections 2 to 4 and 6 of this 1999 Act are
added to and made a part of ORS 465.200 to 465.510.
SECTION 2. For the purposes of sections 2 to 5 of this
1999 Act:
(1) "Environmental
claim" means a claim for defense or indemnity submitted under a general
liability insurance policy by an insured facing, or allegedly facing, potential
liability for bodily injury or property damage arising from a release of pollutants
onto or into land, air or water.
(2) "General liability
insurance policy" means any contract of insurance that provides coverage
for the obligations at law or in equity of an insured for bodily injury,
property damage or personal injury to others. "General liability insurance
policy" includes but is not limited to a pollution liability insurance
policy, a commercial general liability insurance policy, a comprehensive
general liability policy, an excess liability policy, an umbrella liability
insurance policy or any other kind of policy covering the liability of an
insured for the claims of third parties. "General liability insurance
policy" does not include homeowner or motor vehicle policies or portions
of other policies relating to homeowner or motor vehicle coverages, claims-made
policies or portions of other policies relating to claims-made policies or specialty
line liability coverage such as directors and officers insurance, errors and
omissions insurance or other similar policies.
(3) "Insured"
means any person included as a named insured on a general liability insurance
policy who has or had a property interest in a site in Oregon that involves an
environmental claim.
SECTION 3. The Legislative Assembly finds that there
are many insurance coverage disputes involving insureds who face potential
liability for their ownership of or roles at polluted sites in this state. The
State of Oregon has a substantial public interest in promoting the fair and
efficient resolution of environmental claims while encouraging voluntary
compliance and regulatory cooperation.
SECTION 4. (1) As used in this section,
"suit" or "lawsuit" includes but is not limited to formal
judicial proceedings, administrative proceedings and actions taken under Oregon
or federal law, including actions taken under administrative oversight of the
Department of Environmental Quality or the United States Environmental
Protection Agency pursuant to written voluntary agreements, consent decrees and
consent orders.
(2) Except as provided in
subsection (3) of this section, in any action between an insured and an insurer
to determine the existence of coverage for the costs of investigating and
remediating environmental contamination, whether in response to governmental
demand or pursuant to a written voluntary agreement, consent decree or consent
order, including the existence of coverage for the costs of defending a suit
against the insured for such costs, the following rules of construction shall
apply in the interpretation of general liability insurance policies involving
environmental claims:
(a) Oregon law shall be
applied in all cases where the contaminated property to which the action
relates is located within the State of Oregon. Nothing in this section shall be
interpreted to modify common law rules governing choice of law determinations
for sites located outside the State of Oregon.
(b) Any action or agreement
by the Department of Environmental Quality or the United States Environmental
Protection Agency against or with an insured in which the Department of
Environmental Quality or the United States Environmental Protection Agency in
writing directs, requests or agrees that an insured take action with respect to
contamination within the State of Oregon is equivalent to a suit or lawsuit as
those terms are used in any general liability insurance policy.
(c) Insurance coverage for
any reasonable and necessary fees, costs and expenses, including remedial
investigations, feasibility study costs and expenses, incurred by the insured
pursuant to a written voluntary agreement, consent decree or consent order between
the insured and either the Department of Environmental Quality or the United
States Environmental Protection Agency, when incurred as a result of a written
direction, request or agreement by the Department of Environmental Quality or
the United States Environmental Protection Agency to take action with respect
to contamination within the State of Oregon, shall not be denied the insured on
the ground that such expenses constitute voluntary payments by the insured.
(3) The rules of
construction set forth in subsection (2) of this section shall not apply if the
application of the rule results in an interpretation contrary to the intent of
the parties to the general liability insurance policy.
SECTION 5. (1) Sections 2 to 4 of this 1999 Act apply
to all causes of action and civil actions for which a judgment adjudicating the
cause of action or civil action has not been entered in the register of a
circuit court before the effective date of this 1999 Act.
(2) Subsection (1) of this
section shall not be construed to require the retrying of any finding of fact
made by a jury in any trial of an action based on an environmental claim that
was conducted before the effective date of this 1999 Act.
SECTION 6. Sections 2 to 4 of this 1999 Act shall be
known and may be cited as the Oregon Environmental Cleanup Assistance Act.
SECTION 7. It is the intent of the Legislative
Assembly that if any part of sections 2 to 5 of this 1999 Act is held
unconstitutional or void or otherwise devoid of any force or effect, the
remaining parts shall remain in force and remaining parts within any section
containing parts held unconstitutional, void or otherwise devoid of any force
or effect shall survive if the section is capable of being executed in
accordance with the legislative intent set forth in section 3 of this 1999 Act.
SECTION 8. This 1999 Act being necessary for the
immediate preservation of the public peace, health and safety, an emergency is
declared to exist, and this 1999 Act takes effect on its passage.
Approved by the Governor
July 19, 1999
Filed in the office of
Secretary of State July 19, 1999
Effective date July 19, 1999
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