First Circuit Rules Excess Insurer Must Provide Coverage for Fuel Spill

Illustration of man in chemical suit

Attorneys Syed S. Ahmad and Adriana A. Perez analyze Performance Trans. Inc. v. General Star Indem. Co.

January 18, 2021
Syed S. Ahmad & Adriana A. Perez - Hunton Andrews Kurth

The First Circuit recently held that a “Special Hazard and Fluids Limitation Endorsement” was ambiguous and therefore there was excess coverage for a fuel spill that occurred after a tanker-truck overturned.

In Performance Trans. Inc. v. General Star Indem. Co., the First Circuit reversed the District Court’s grant of summary judgment in favor of General Star Indemnity Company. The District Court held that the excess policy General Star issued to Performance Trans. Inc. precluded coverage for a spill that resulted in the leaking of thousands of gallons of fuel. The District Court relied on the existence of a total pollution exclusion to bar coverage and held that the policy’s Special Hazards and Fluids Limitation Endorsement could not create an ambiguity that would afford coverage.

Reprinted courtesy of Syed S. Ahmad, Hunton Andrews Kurth and Adriana A. Perez, Hunton Andrews Kurth

Mr. Ahmad may be contacted at sahmad@HuntonAK.com
Ms. Perez may be contacted at pereza@HuntonAK.com



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