Fifth Circuit Rejects Argument That Total Pollution Exclusion Creates Illusory Coverage

The Fifth Circuit affirmed the district court’s grant of summary judgment in favor of Liberty Mutual, finding that Liberty Mutual had no duty to defend or indemnify Linn Energy in connection with the underlying lawsuit, which alleged leakage of saltwater, brine and other contaminants from Linn Energy’s pipeline onto the complainants’ properties.  Notably, the Liberty Mutual policy issued to Linn Energy contained an Underground Resources and Equipment Coverage endorsement, which included in the definition of “property damage” damage to particular types of underground resources.  Nonetheless, …

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