The Eleventh Circuit recently examined two insurance coverage cases involving the applicability of the pollution exclusion. In one case it held that sewage was not a pollutant, but in the other case it held that storm water was a pollutant. These cases provide guidance to policyholders who may face a pollution exclusion argument from their carrier in the Eleventh Circuit. In the case Evanston Insurance Company v. J&J Cable Construction, LLC, the Eleventh Circuit held that damage caused by a sewage leak was not barred by the pollution exclusion. (Case No. 17-11188, April 20, 2018). The court looked to a prior Alabama case that distinguished industrial waste from residential sewage. However, the Eleventh Circuit reached the opposite conclusion in the case Centro Development Corp….
Daubert challenges are common in commercial disputes and often have a powerful impact on litigation results. As established by Federal Rule of Evidence 702 and the U.S. Supreme Court case Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 589 (1993) certain requirements were set forth for expert testimony to be admissible, like the expert’s qualifications and whether the testimony is based on sufficient facts and reliable methods. However, it is not often that you see a Daubert challenge resolve an entire insurance coverage dispute – let alone at the summary judgment phase. Yet, the recent case Varlen Corporation v. Liberty Mutual Insurance Company, No. 13-cv-05463 (N.D. Ill. Sept. 25, 2017), did just that. This case involved a coverage dispute stemming from environmental contamination that hinged on whether the pollution…READ MORE
Does your company have subsidiaries, a parent corporation, or a sister company? If so, one scenario you should consider is when a claimant that should have sued your company instead sues one of those other entities. Because you know the claimant’s grievance is ultimately with your company, your company defends and pays the claim despite not technically being named in the litigation. To make matters worse, you then realize the entity named as a defendant is not listed as a named insured under your insurance policy. If you find yourself in this situation, are you out of luck when it comes to getting insurance coverage for that claim? Not always. Your insurance carrier will surely pounce on this technicality and try to convince…READ MORE