Dimmitt Chevrolet, Inc. v. Southeastern Fidelity Insurance Corp.

Dimmit Chevrlet operated two car dealerships which sold the used crankcase oil generated by its business to Peak Oil Company. The Environmental Protection Agency found substantial pollution at Peak's disposal site, and designated Dimmit as a potentially responsible party. The issue set forth was whether Dimmit's comprehensive liability insurance policy covered the cost of the hazardous pollution.

The court held that the pollution damage was not within the scope of Southeastern's policy. The pollution took place over a period of many years and most of it occurred gradually. Thus, it could not have occurred suddenly, as the policy prescribed.

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