Ohio High Court Says Insurers Not Liable for Lead Paint Abatement Fund Payments

CLEVELAND — The Ohio Supreme Court has ruled that Certain Underwriters of Lloyd’s London and other insurers are not obligated to reimburse Sherwin-Williams Co. for $101 million it paid into an abatement fund to mitigate the dangers of lead paint in California homes because the payment does not constitute “covered damages.”

In a Dec. 10 opinion that reversed a ruling by the Ohio Court of Appeals, the high court explained that because the abatement-fund payment was made to prevent future harm rather than compensate for past harm, the payment was not “damages” covered under the policies.

“Although the exact phrasing …