Barrett v. National
Union Insurance Company
(Ga.App. May 11, 2010)
A Georgia
Court of Appeals has ruled that natural gas is not a pollutant within the
meaning of a CGL policy. An employee of a gas-line installation
contractor suffered brain damage while working with natural gas lines.
According to the decision, the employee suffered injury because he was wearing
a plastic rain poncho and natural gas accumulated over 2+ hours he was working
with the gas line. As a result of exposure to the accumulated gas, he sustained
a serious brain injury.
The primary insurer acknowledged coverage, but the excess insurer denied citing
the pollution exclusion. The trial court found in favor of the excess
insurer, citing a case which held that the pollution exclusion unambiguously
excluded coverage for carbon monoxide exposure. The Georgia Court of Appeals
reversed. The Barrett court held that notwithstanding the holding applying the
exclusion to carbon monoxide, the exclusion was ambiguous as it applied to the
facts case. Based upon the facts presented, it was not alleged that the
release of the gas caused the damage, but rather the negligence of the insured
allowed the accumulation and it was the lack of oxygen, not the presence of
gas, that caused the damage. The court also held that it was against public policy to allow a insurer to
sell a policy that excluded coverage for the insured's main operations.
For a copy of the decision, click here
Sarah Delaney and Jeffrey Kingsley
cases provided courtesy of Lexis