{"id":900720,"date":"2023-01-10T14:49:03","date_gmt":"2023-01-10T21:49:03","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=900720"},"modified":"2023-01-10T14:49:06","modified_gmt":"2023-01-10T21:49:06","slug":"pollution-exclusion-bars-coverage-cgl-policy","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/pollution-exclusion-bars-coverage-cgl-policy\/","title":{"rendered":"Georgia Federal Court Holds That Pollution Exclusion Bars Coverage Under Liability Policy for Claims Arising From Discharge of PFAS Into Waterways"},"content":{"rendered":"\n<p>Paul Briganti | <a href=\"https:\/\/www.whiteandwilliams.com\/people-PaulBriganti\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">White and Williams<\/a><\/p>\n\n\n\n<p>On December 5, 2022, the U.S. District Court for the District of Georgia held that a <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/pollution-exclusion-precluded-coverage-claims-arising-alleged-carbon-monoxide-poisoning-oregon-district-court-rules\/\" target=\"_blank\" rel=\"noreferrer noopener\">total pollution exclusion<\/a> (TPE) in a CGL policy relieved the insurer of any obligation to defend or indemnify a recycling company in a putative class action alleging PFAS contamination of Georgia waterways.\u00a0<em>See Grange Ins. Co. v. Cycle-Tex Inc., et al.<\/em>, Order, Civ. A. No. 4:21-cv-00147-AT (N.D. Ga. Dec. 5, 2022). The decision adds to a slowly-developing body of case law addressing coverage issues arising out of PFAS-related claims.<\/p>\n\n\n\n<p>In&nbsp;<em>Grange<\/em>, the insured, Cycle-Tex, Inc., was the operator of a thermoplastics recycling facility in Dalton, Georgia. Cycle-Tex and other defendants \u2013 which included chemical suppliers, carpet manufacturers, intermediaries, the City of Dalton and the Dalton-Whitfield Solid Waste Authority \u2013 were named in a putative class action complaint alleging that residents of Dalton had been injured as a result of the defendants\u2019 discharge of PFAS into local waterways. The complaint sought damages for: (1) alleged harm to the residents\u2019 health by virtue of ingesting contaminated water; (2) alleged property damage resulting from the contamination of the public water supply; and (3) the payment of surcharges and heightened water rates as a result of the alleged contamination.<\/p>\n\n\n\n<p>Cycle-Tex tendered the suit to its CGL insurer, which agreed to provide a defense under an ROR. After commencing a declaratory judgment action against Cycle-Tex and the named class action plaintiff, the insurer moved for a summary judgment ruling that it had no duty to defend or indemnify based on the TPE in its policy. The TPE stated, in part, that there would be no coverage for:<\/p>\n\n\n\n<p>(1) \u201cBodily injury\u201d or \u201cproperty damage\u201d which would not have occurred in whole or part but for the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of \u201cpollutants\u201d at any time[;]<\/p>\n\n\n\n<p>[or]<\/p>\n\n\n\n<p>(2) Any loss, cost, or expense arising out of any:<\/p>\n\n\n\n<p>(a) Request, demand, order or statutory or regulatory requirement that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize or in any way respond to, or assess the effects of \u201cpollutants\u201d. . . .&nbsp;<\/p>\n\n\n\n<p>In its decision granting the insurer\u2019s motion<sup><a href=\"https:\/\/www.whiteandwilliams.com\/resources-alerts-Georgia-Cycle-Tex-Alert#_ftn1\">[1]<\/a><\/sup>, the court saw \u201cno doubt\u201d that the PFAS chemicals at issue constituted \u201cpollutants,\u201d which the policy defined as \u201cany solid, liquid, gaseous or thermal irritant or contaminant, including . . . chemicals . . . .&#8221; The court also cited cases in which Georgia state courts have \u201crepeatedly emphasized the \u2018broad\u2019 reach of the term \u2018pollutants\u2019 within [TPEs].\u201d The court concluded that both the \u201cbodily injury\u201d \u2013 specifically via the ingestion of PFAS chemicals \u2013 and the \u201cproperty damage\u201d alleged in the underlying complaint \u201cplainly\u201d fell within subparagraph (1) of the TPE. The court also determined that the damages sought for surcharges and heightened water rates were subject to subparagraph (2) of the TPE, because they constituted \u201closs[es], cost[s], or expense[s]\u201d that arose out of a request, demand, or statutory or regulatory requirement to \u201cclean up, remove, contain, treat, detoxify or neutralize or in any way respond to\u201d PFAS chemicals from the public water supply. Because all of the alleged damages \u201cunambiguously\u201d fell under the TPE, the court found the insurer had no duty to defend \u2013 and, therefore, no duty to indemnify \u2013 Cycle-Tex under Georgia law.<\/p>\n\n\n\n<p><em>Grange&nbsp;<\/em>joins a small handful of decisions considering the application of pollution exclusions to PFAS-related claims.&nbsp;<em>See also Tonoga, Inc. v. N.H. Ins. Co.<\/em>, 159 N.Y.S.3d 252 (N.Y. Sup. Ct. App. Div. 3d Dep\u2019t 2002);&nbsp;<em>Colony Ins. Co. v. Buckeye Fire Equip. Co.<\/em>, 2020 U.S. Dist. LEXIS 194709 (W.D.N.C. Oct. 19, 2020),&nbsp;<em>aff\u2019d<\/em>, 2021 U.S. App. LEXIS 34305 (4th Cir. Nov. 18, 2021). More such decisions will likely follow.<\/p>\n\n\n\n<p><sup><a href=\"https:\/\/www.whiteandwilliams.com\/resources-alerts-Georgia-Cycle-Tex-Alert#_ftnref1\">[1]<\/a><\/sup>As to Cycle-Tex, which had failed to appear, the court converted the insurer\u2019s motion to one for default judgment.\u00a0<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p><strong>When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes &#8211; please call Advise &amp; Consult, Inc. at 888.684.8305, or email <a href=\"mailto:experts@adviseandconsult.net\" target=\"_blank\" rel=\"noreferrer noopener\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Paul Briganti | White and Williams On December 5, 2022, the U.S. District Court for the District of Georgia held that a total pollution exclusion (TPE) in a CGL policy relieved the insurer of any obligation to defend or indemnify a recycling company in a putative class action alleging PFAS contamination of Georgia waterways.\u00a0See Grange&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/pollution-exclusion-bars-coverage-cgl-policy\/\">Continue reading <span class=\"screen-reader-text\">Georgia Federal Court Holds That Pollution Exclusion Bars Coverage Under Liability Policy for Claims Arising From Discharge of PFAS Into Waterways<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[10791,10721],"tags":[9895,392,530],"class_list":["post-900720","post","type-post","status-publish","format-standard","hentry","category-commercial-general-liability-policy","category-insurance","tag-advise-consult","tag-cgl-policy","tag-pollution-exclusion","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Georgia Federal Court Holds That Pollution Exclusion Bars Coverage Under Liability Policy for Claims Arising From Discharge of PFAS Into Waterways - Advise &amp; 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