Travelers Casualty and Surety Company v. Alabama Gas Corporation

Summary

The Court held that an EPA Potentially Responsible Party letter issued under CERCLA satisfies the "suit" requirement in the insured's liability policies and therefore can trigger the insurer's duty to defend. It reasoned that CERCLA gives the EPA coercive authority that can determine or substantially affect the insured's liability before any conventional court action, making the administrative process the functional equivalent of a suit. Justice Shaw, joined by Justice Wise, would have declined to answer the certified question, and Justice Murdock likewise would have declined to answer it.