Pollution Exclusion applies to Sewage
Certain Underwriters v. B3, Inc., was a declaratory judgment action in state court, on whether the Total Pollution exclusion in an insurance policy issued by Lloyds applied to bar coverage for liability and damages. The trial court found that there was no coverage, and the Court of Civil Appeals affirmed. Since there was no coverage for the claim, there was no need to determine whether another party was a third party beneficiary of the policy and entitled to indemnification.
The claim involved a damage claim by nearby landowners who said that their sewage from the defendants' wastewater treatment plant ended up on their property. The court found that sewage was a pollutant (no kidding!) and was within the pollution exclusion of the policy.
