Another (Insurer) Bites The Dust: Virginia District Court Rejects Narrow Reading of Pollution Exclusion

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In Allied Property and Casualty Insurance Company v. Zenith Aviation, Inc., the policyholder, Zenith, an aircraft parts distributor, hired a construction company to install an elevator in its distribution warehouse.

September 10, 2018
Michael S. Levine & Latosha M. Ellis - Hunton Insurance Recovery Blog

In a victory for policyholders, and an honorable mention for Merriam-Webster’s Dictionary, a federal judge in Virginia ruled that the dispersal of concrete dust that damaged inventory stored in an aircraft part distributor’s warehouse was a pollutant, as defined by the policy, but that it also constituted “smoke” as that term was defined in the dictionary, thereby implicating an exception to the policy’s pollution exclusion. The Court then granted summary judgment for the policyholder, who had suffered a $3.2 million loss.

Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Latosha M. Ellis, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com



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