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December 28, 2000

OPINION – FOR PUBLICATION

SULLIVAN, Judge

Appellants, General Housewares Corporation and its wholly owned subsidiary, Chicago Cutlery, Inc., (collectively “Housewares”), challenge the trial court’s entry of summary judgment in favor of National Surety Corporation (National).

We reverse and remand.

The facts relevant to this appeal reveal that Housewares manufactured cookware and precision tools at four locations:  Terre Haute, Indiana, Sidney, Ohio, Lexington, Kentucky, and Antrim, New Hampshire.  Housewares purchased three comprehensive general liability (CGL) insurance policies from National.  The first of these policies, number S 64 DXX 80589089, provided coverage from March 1, 1994 through March 1, 1995.  The policies numbered S 64 DXX 80614056 and XSC-000-8231-4808 provided coverage from March 1, 1995 through March 1, 1996.

Housewares’ largest manufacturing plant is located in Terre Haute, Indiana.   During the time relevant to this appeal, Housewares manufactured enamel-coated cookware at the Terre Haute facility.  During an inspection of the site, the Indiana Department of Environmental Management (IDEM) took samples of sludge that had formed as a result of “wet dipping” the cookware in enamel and determined that the samples contained unacceptable levels of barium and cadmium.  As a result, IDEM sent Housewares a “Notice of Violation” on February 9, 1989.  In September 1989,

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