The Rough Notes Company Inc.
  • Home
  • About
  • Publications
  • RN Newsletter
  • Products & Solutions
  • Media Kits
  • Contact Us
  • Shop
    • Catalog
    • Enter Promo Code
    • Pay Your Existing Bill Here
No Result
View All Result
  • Home
  • About
  • Publications
  • RN Newsletter
  • Products & Solutions
  • Media Kits
  • Contact Us
  • Shop
    • Catalog
    • Enter Promo Code
    • Pay Your Existing Bill Here
No Result
View All Result
The Rough Notes Company Inc.
No Result
View All Result
Home Court Decisions

Liberal interpretation of pollution exclusion

May 2, 2025

INSURANCE-RELATED COURT CASES
Digested from case reports published online
COURT DECISIONS

Liberal interpretation of pollution exclusion

Seventeen-year-old Josiah Wheeler rented a cabin in Tok, Alaska, that was owned by Deborah Overly and Terry Summers. Wheeler was found dead in the cabin’s bathtub, and an autopsy revealed that he had died of acute carbon monoxide poisoning.

A deputy fire marshal discovered that a propane water heater in the bathroom had an exhaust flue that was not connected to any external venting, causing high levels of carbon monoxide to accumulate when the bathroom door was shut.

The cabin was covered under a homeowners policy issued by Garrison Property and Casualty Insurance Company (Garrison); the policy included a pollution exclusion clause.

Wheeler’s estate and his parents sought an out-of-court settlement with the homeowners, who notified Garrison of the claims. Garrison denied coverage, citing the pollution exclusion clause, and refused to defend the homeowners. The homeowners confessed liability and assigned their right to proceed against Garrison to Wheeler’s estate.

The estate then filed suit against Garrison in federal district court, seeking damages and a declaratory ruling that the policy provided coverage. The district court granted summary judgment to Garrison, concluding that the pollution exclusion unambiguously barred coverage for carbon monoxide poisoning. The estate appealed.

Instead of ruling on the merits, the United States Court of Appeals for the Ninth Circuit sought clarification from the supreme court on how the pollution exclusion should be interpreted under Alaska law.

Specifically, the court certified the following question: “Does a total pollution exclusion in a homeowners insurance policy exclude coverage of claims arising from carbon monoxide exposure?”

The court also indicated: “We do not intend the form of this question to limit the Alaska Supreme Court’s consideration of the issues relevant to this matter. If the Alaska Supreme Court decides to consider the certified question, it may reword the question in its discretion.”

The Alaska Supreme Court accepted the certified question and ordered full briefing. The court said: “Where an insurance company by plain language limits the coverage of its policy, we recognize that restriction … but the reasonable expectations of applicants and intended beneficiaries regarding the terms of insurance contracts will be honored, even though painstaking study of the policy provisions would have negated those expectations.”

Estate of Josiah Wheeler v. Garrison Property and Casualty Insurance Company—Supreme Court of the State of Alaska—No. S-18849—February 28, 2025.

Tags: Court Decisionsinsurance industryLiberal interpretation of pollution exclusion
Previous Post

Good news for roofer

Next Post

No joy for surviving spouse

Next Post

No joy for surviving spouse

FEATURES/ COLUMNS/ DEPARTMENTS

  • Agency of the Month (99)
  • Agency Partners (38)
  • Alternative Risk Transfer (28)
  • Benefits & Financial Services (159)
  • Benefits Lead (104)
  • Commercial Lines (122)
  • Court Decisions (335)
  • Coverage Concerns (176)
  • Excess and Specialty Lines (102)
  • From The Latest Issue (561)
  • General Articles (265)
  • Management (789)
  • Marketing (2)
  • Organizational Profiles (82)
  • Personal Lines (100)
  • Producers Blog (53)
  • RN Blog Top Q&A For Agents (84)
  • Specialty Lines (257)
  • Technology (175)
  • Trending Blogs (158)
  • Young Professionals (105)
  • Home
  • About
  • Publications
  • RN Newsletter
  • Products & Solutions
  • Media Kits
  • Contact Us
  • Shop

By continuing to browse the site, you agree to the data collection and processing practices disclosed in our recently updated privacy policy.

©The Rough Notes Company. No part of this publication may be reproduced, translated, stored in a database or retrieval system, or transmitted in any form by electronic, mechanical, photocopying, recording, or by other means, except as expressly permitted by the publisher. For permission contact Samuel W. Berman.

Sitemap

No Result
View All Result
  • Home
  • About
  • Publications
  • RN Newsletter
  • Products & Solutions
  • Media Kits
  • Contact Us
  • Shop
    • Catalog
    • Enter Promo Code
    • Pay Your Existing Bill Here

By continuing to browse the site, you agree to the data collection and processing practices disclosed in our recently updated privacy policy.

©The Rough Notes Company. No part of this publication may be reproduced, translated, stored in a database or retrieval system, or transmitted in any form by electronic, mechanical, photocopying, recording, or by other means, except as expressly permitted by the publisher. For permission contact Samuel W. Berman.

Sitemap