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Case Briefs

By ALM Staff | Law Journal Newsletters |
March 29, 2007

Iowa High Court Upholds Plain Language of Pollution Exclusion

The Supreme Court of Iowa has answered a certified question of Iowa law that asked whether the pollution exclusions in certain primary and umbrella liability policies barred coverage for damages arising out of a death caused by the accumulation of carbon monoxide inside a washroom. Bituminous Casualty Corp. v. Sand Livestock Systems, Inc., et al., No. 135/05-1063 (Iowa Feb. 23, 2007). In concluding that the pollution exclusions at issue did bar coverage, the court held that the release of carbon monoxide gas unambiguously fell within the 'broad language' of the exclusions, which made no distinction between ”traditional environmental pollution' and injuries arising from normal business operations.' The court did not address whether applying the exclusions would violate the doctrine of 'reasonable expectations,' finding that this was an issue of fact for the certifying court to decide.

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