Insurance companies in Butler lead-tainted water case claim no liability

April 04--Butler Area School District's insurance companies contend that their coverage doesn't include potential payouts in a lawsuit over lead-tainted water at Summit Elementary.

The issue was raised Tuesday during a hearing in U.S. District Court in Pittsburgh.

Lawyers for The Netherlands and Peerless insurance companies are asking a judge to order that they are not obligated to pay or defend the district or former Superintendent Dale Lumley.

A federal lawsuit filed in February against the school district contends that Lumley and administrators concealed information for months that Summit Elementary's water supply contained dangerous amounts of lead. A subsequent executive summary of an internal investigation also references a possible cover-up or negligence in addressing and communicating the lead problem.

Three school district administrators, including Lumley, resigned in the midst of the scandal, and a criminal investigation is ongoing.

In a separate complaint by the insurance carriers filed in federal court, Philadelphia attorney John C. Sullivan said both companies are exempt from claims because their policies with the district did not cover lead exposure.

Sullivan, who represents both insurance companies, declined to comment beyond his legal filings.

Summit closed at the end of January due to the lead problem, and its approximately 250 students began attending the formerly shuttered Broad Street Elementary in Butler.

Jennifer Tait sued the district and Lumley after her daughter, Jillian, who attended Summit, tested positive for lead exposure. The case filed by attorneys Brendan Lupetin and Douglas Olcott seeks class-action status, which would let families of other students exposed to lead in the water join the lawsuit.

The lawsuit seeks unspecified monetary damages and an order for the district to pay for future periodic lead testing for Summit students.

Lupetin said the insurance companies add another wrinkle to the complicated case.

"It's another unfortunate development in this sad story with the insurance companies now trying to get out from under their obligations," he said Tuesday.

School district Solicitor Tom King declined comment. Another attorney for the district, Robert Dapper, said in an email, "The District's answer will be timely filed on or before April 14."

Lead is a neurotoxin that can impair child brain development and cause kidney damage, mood disorders, weight loss and other ailments.

Ben Schmitt is a Tribune-Review staff writer. Reach him at 412-320-7991 or [email protected].

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