Federal Court of Appeals Upholds Pollution Exclusion As Unambiguous Under Kansas Law

Union Ins. Co. v. Mendoza (United States Court of Appeals, Tenth Circuit, December 13, 2010)

This coverage dispute arises from an environmental exposure claim wherein third-party claimant, Karla Mendoza, appealed the district court’s grant of summary judgment in favor of Union Insurance in which it ruled that the accidental disbursement of anhydrous ammonia was excluded from coverage by Union’s pollution exclusion clause.

Mendoza, while working on a road-side construction crew, alleged personal injuries when she was inadvertently exposed to a mist of anhydrous ammonia fertilizer

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District Court Finds Coverage For Drilling Firm For Remedial Costs In Drilling Relief Wells Under Policy Issued By Underwriters

Taylor Energy Co. LLC v. Underwriters At Lloyds   (United States District Court, Eastern District of Louisiana, October 29, 2010)

This environmental coverage case arises out of the collapse of an oil production platform owned by policyholder Taylor Energy and certain costs incurred by Taylor Energy as the result of oil seepage from 28 wells which were serviced by that platform but damaged during Hurricane Ivan. Taylor Energy had insured the structure and wells through defendants, Certain Underwriters at Lloyd's London ("Underwriters").

Underwriters moved for summary

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Insurer Owes No Duty to Defend or Indemnify in Liquid Fertilizer Spill

Evanston Ins. Co. v. G&T Fabricators Inc. (E.D.N.C. September 23, 2010)

Allied Terminals Inc. (“Allied”) hired G&T Fabricators Inc. (“G&T”) to repair an above-ground storage tank at its facility in Chesapeake, Virginia.  G&T was required to have general liability insurance coverage of at least $1 million.  G&T purchased this coverage from Evanston Insurance Company.  In November 2008, an accident caused the tank that was being repaired to spill 2 million gallons of liquid fertilizer.  G&T filed a claim and the insurer rescinded the policies, refunding

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Is This Summer’s Oil Spill a Market-Changer?

The oil spill in the Gulf has dominated the news over the summer, and the impact is far-reaching. One of the areas of concern is whether the incident will have a lasting market-changing effect on the insurance industry, on consumers and the parties involved. Dan Gerber, Chair of the Global Insurance Practice Group at the firm Goldberg Segalla spends a few minutes on USLAW Radio discussing the topic. Click below to download the podcast.

Uslawradio083110

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Fifth Circuit Affirms Summary Judgment For Insurer In Hurricane Katrina Coverage Litigation

Bayle v. Allstate Insurance Co.

(United States Court of Appeals, Fifth Circuit, August 11, 2010)

 

This property insurance coverage matter addressed a recurring question encountered in Hurricane-related property insurance disputes: i.e., where the parties agree that both covered risks and non-covered risks caused some of the damage, which party must bear the burden of identifying the discrete items of property that were damaged and proving what portion of the damage was caused by the excluded risk?  Specifically, the parties disagreed whether it is

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Fifth Circuit Affirms Bar of Recovery To Insured Under Its Environmental Policies Based On Prior Recovery Under Its Many CGL Policies

RSR Corp et. al. v. International Insurance Co.

(United States Court of Appeals, Fifth Circuit, July 26, 2010)

 

 

This complex insurance coverage matter arises from a CERCLA cost recovery action stemming from a lead smelter operation on Harbor Island, near Seattle Washingtonoperated by plaintiff-insured RSR Corp.  The insurer sued RSR Corp. and its subsidiaries seeking a declaration that International had no obligation to RSR Corp. under four Environmental Impairment Liability policies.  RSR also purchased many (at least 53) Comprehensive General Liability

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Court Dismisses Insurer’s CERCLA’s Cost Recovery Subrogation Claims

Chubb Custom Ins. Co. v. Space Systems/Loral, Inc. et. al. (United States District Court, Northern District of California, July 13, 2010)

This CERCLA cost recovery action was initiated by the insurer seeking recovery of costs incurred on behalf of one of its insured. Chubb alleged that defendants were jointly and severally liable for clean-up costs incurred in response to releases of hazardous substances at location owned by Chubb’s insured. Specifically, the action involved five properties in Palo Alto, California. Chubb alleged that the site is …

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Coal Plant Operator and Insurer Settle Dispute Over Coverage for Coal Dust Pollution

Grizzly Processing LLC v. Wausau Underwriters Ins. Co. (E.D. Ky. June 30, 2010)

In March 2010 we reported on Grizzly Processing LLC v. Wausau Underwriters Ins. Co.   In that case, Grizzly Processing LLC (“Grizzly”) was sued in state court by ninety plaintiffs alleging the company contaminated their homes with coal dust and other pollutants in Floyd County, Kentucky.  Plaintiffs also alleged damages from plant noise, including blast operations, violations of certain environmental regulations, and violations of the Kentucky Surface Mining Act.  Plaintiffs

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Eleventh Circuit Upholds Denial of Coverage in $75M Toxic Tort Suit

Continental Cas. Co. v. City of Jacksonville

(11th Cir. (Fla.) June 24, 2010)

 

The Eleventh Circuit upheld a district court’s ruling that Century Indemnity Company is not obligated to defend or indemnify the Duval County School Board in a toxic tort suit filed by thousands of Jacksonville, Florida residents for property damage and emotional distress arising from the construction of a school on a contaminated site in 1957.  

 

The School Board purchased land once used as a landfill, built a school

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Court Granted Insurer Summary Judgment On Applicability of Pollution Exclusion

Devcon Intl. Corp. v. Reliance Ins. Co. et. al. (United States Court Of Appeal, Third Circuit, June 8, 2010)

This environmental coverage dispute arises from an alleged nuisance caused by the policyholder, Virgin Islands Cement, wherein large quantities of dust from an airport construction project allegedly contaminated plaintiffs’ drinking water and caused breathing disorders and other unspecified physical, emotional, and psychological damage. The residents also claimed that emissions from construction vehicles were causing similar health problems.

The policyholder tendered to Reliance, who agreed to defend

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