Pollution Exclusion Bars Coverage for City's Environmental Contamination Suit, Calif. Federal Judge Rules

SACRAMENTO, Calif. — A California federal judge has relieved Arrowood Insurance Co. of any obligation to cover an environmental contamination action filed by a city against the successor of a plating company because the “occurrences” fall within the policy’s Pollution Exclusion.

In a Jan. 11 order, Judge William B. Shubb of the U.S. District Court for the Eastern District of California explained that the “Sudden and Accidental” exception to the exclusion does not apply because the “occurrences” released an insignificant amount of contamination.

The City of West Sacramento filed an environmental contamination enforcement action against R&L Business Management. The …