Dimmitt (P) operated two car dealerships and sold the used crankcase oil to Peak Oil Company from 1974 to 1979. In 1983, the EPA determined that substantial pollution at Peak's worksite had resulted from storage of its waste sludge in unlined bins. P was designated as a possible responsible party. P agreed to undertake remedial measures without conceding its liability under CERLA. Southeastern (D) provided a comprehensive general liability insurance policy to P from 1972 to 1980. The policy excluded coverage for bodily injury or property damage arising out of the discharge, dispersal, release or escape of smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids, or gases, waste materials into or upon the land, the atmosphere or any water course or body of water; but does not apply if the discharge was sudden and accidental. D filed a declaratory judgment action against P seeking a declaration that D had no duty to defend or indemnify P under its policy. P filed a counterclaim seeking a contrary declaration. Both sides filed summary judgment motions. The court awarded summary judgment to D; the pollution at Peak had occurred over many years and could not be considered sudden. P appealed.

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