Minnesota Supreme Court Holds Absolute Pollution Exclusion Covers Carbon Monoxide

In Midwest Family Mutual Insurance Company v. Wolters, __ N.W.2d __, 2013 WL 2363239 (Minn. May 31, 2013), the Minnesota Supreme Court, applying Minnesota law,  affirmed the court of appeals ruling that an absolute pollution exclusion in a general liability policy encompasses carbon monoxide released inside a home by a negligently installed boiler.  The court found the definition of “pollutant” unambiguously applied to carbon monoxide.

In Wolters, a general contractor improperly installed a boiler, as well as the carbide monoxide detectors, in a personal residence.  Id. at *2.  The home owners suffered carbon monoxide poisoning and brought litigation against the contractor.  Id.  The contractor’s insurer appointed defense counsel, subject to a reservation of rights, and initiated a declaratory judgment action, seeking a ruling that it had no duty to defend or indemnify because coverage was barred under the absolute pollution exclusion.  Id.  The district court