Pollution Exclusion Coverage Update

Pollution Exclusion – New York

St. Paul Fire and Marine Ins. Co. v. Getty Props. Corp.
-- N.Y.S.3d --; Case No. 2021-09202 (N.Y.S. June 26, 2024)

The New York Supreme Court, Appellate Division, reversed the trial court's decision denying the plaintiff insurers' motion for summary judgment on the applicability of pollution exclusions in their policies. The appellate court concluded that the insurers did not have a duty to defend or indemnify the insured, defendant Getty Properties Corporation (Getty), because the pollution exclusions in the policies unambiguously precluded coverage.

In 2007, the New Jersey Department of Environmental Protection commenced an action against Getty related to contamination of surface and ground waters with Methyl Tertiary Butyl Ether (MTBE), which is a fuel additive that was incorporated into gasoline. The action was removed to a Multidistrict Litigation (MDL) action in New York. Between 2007 and 2017, two additional actions