This section contains the nature of the case and procedural background.

The Western Processing hazardous waste facility was designated by the EPA to require cleanup. A complaint under CERCLA was filed. The EPA notified the appellants, the policyholders, that they were generators of waste at the site and were responsible parties for the response costs at this site. The Court then eventually entered a consent decree between EPA and the policyholders for the cleanup of the waste contamination at the site. Response costs were those costs to remove the hazardous substances and other costs for remedial work. During the time that the policyholders generated their waste, they carried Comprehensive General Liability insurance purchased from respondents, insurers. The operative provisions of the policies in question provided that the insurer will pay all sums which the insured shall become obligated to pay as damages because of bodily injury or property damage to which the policy applies. The policies did not specifically define damages. Boeing (P) sued Aetna (D) for indemnification for the response costs they incurred at the Western Processing site. Motions for summary judgment were filed, and the issue of whether the response costs constitute damages within the policies was certified to the Washington Supreme Court.

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