August 30, 2017

Lead-Based Paint Is a “Pollutant” within CGL Pollution Exclusion

Source: http://www.constructionrisk.com, August 2017
By: Kent Holland

Where lead-based paint was ingested by a tenant’s child, the tenant sued her landlord for injuries allegedly sustained by the child. The landlord tendered the claim to its commercial general liability (CGL) insurer who, instead of defending the case, filed a declaratory judgment action seeking a determination that the pollution exclusion of the CGL policy barred coverage for the alleged injuries. The Owner held that, although not specifically listed in the pollution definition as a “pollutant,” lead-based paint is, in fact, a “pollutant” within the meaning of the policy. The policy’s pollution exclusion was, therefore, applicable, and the insurer had no duty to defend and indemnify the landlord. See Georgia Farm Bureau Mut. Ins. Co. v. Smith, 298 Ga. 716, 784 S.E.2d 422 (2016).

The terms of the CGL policy required the insurer “to pay those sums that the insured becomes legally obligated to pay as damages because of ‘bodily injury’ or ‘property damage’” … “only if: (1) the ‘bodily injury’ or ‘property damage’ is caused by an ‘occurrence’ that takes place ….” An occurrence is defined as “an accident.” Coverage was subject to exclusions, including the pollution exclusion, which provided that the insurance does not apply to “(1) ‘[b]odily injury’ or ‘property damage’ arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of ‘pollutants’: (a) [a]t or from any premises, site or location which is or was at any time owned or occupied by, or rented or loaned to, any insured.”…

December 10, 2010

Company Ordered to Pay $1 million for Air Pollution in Manatee

Publication Date 06/22/2010
Source: Tampa Tribune (FL)

A federal judge today ordered a Delaware company to pay $1 million in penalties for four criminal violations of the Clean Air Act at its Manatee County facility.

Kinder Morgan Port Manatee Terminal, which operates a dry bulk material handling and storage facility at 475 N. Dock St. in Port Manatee, must pay a $750,000 criminal fine and a $250,000 community service payment to the National Fish and Wildlife Foundation.

U.S. District James Moody also ordered the company to serve two years of probation. It has agreed to implement an extensive environmental compliance program.…

September 20, 2010

Fire at Warehouse Containing HAZMATS

Acknowledgement to Great American

A fire occurred in the middle of the night at a warehouse facility. Responders to the fire discovered heavy smoke settling over a nearby residential community. It was determined that various hazardous materials were stored in the warehouse and that vapors from the fire could present a health hazard. Residents were advised to stay in their homes. Hazmat responders set up containment to capture runoff from the fire suppression water and to conduct air monitoring. After the fire was extinguished, testing revealed that contamination was present in the soils beneath and around the warehouse as a result of the contaminated fire suppression water. Further investigation and subsequent clean-up activities were required. Several claims alleging bodily injury due to inhalation of toxic fumes from the fire were also filed by nearby residents. The warehouse owner also incurred additional expenses associated with the defense and settlement.…

August 16, 2010

Mold Found in Two Warehouses

Acknowledgement to XL Environmental

A claim was made by a tenant of and against an XL insured real estate holding company. The claim was for the presence of microbial (mold) growth in two warehouses on an insured property.

XL’s environmental claims counsel retained an analytical forensics firm on the insured’s behalf to investigate the buildings and prepare a remediation plan. The claims counsel also retained a third-party remediation contractor to investigate the source of water intrusion. It was ultimately determined that the water infiltration was the result of an aging roof.

The root cause of the microbial growth and corrective action necessary was investigated, approved and monitored by XL. Mold abatement and replacement of insulation was approved and a contractor was hired to perform same.

XL paid $2,000,000 under the insured’s Pollution and Remediation Legal Liability Policy to resolve the claim on our insured’s behalf.…