Opinion · New York Court of Appeals
Powers Chemco, Inc. v. Federal Insurance
Powers Chemco, Inc. v. Fed. Ins., 74 N.Y.2d 910 (New York Court of Appeals 1989)
- Type
- Opinion
- Court
- New York Court of Appeals
- Jurisdiction
- New York
- Date
- 1989-11-21
- Topic
- bankruptcy
noting that pollution damage, "resulting from purposeful conduct, cannot be considered 'accidental' " | noting that pollution damage, “resulting from purposeful conduct, cannot be considered ‘accidental’ ” | alleging "(1) 'burying drums containing the wastes,' (2) 'dumping waste liquids from 55-gallon drums into open pits and then disposing of the drums in the pit,' and (3) discharging 'wastes through a pipe into pits at the site' " | alleging “(1) ‘burying drums containing the wastes,’ (2) ‘dumping waste liquids from 55-gallon drums into open pits and then disposing of the drums in the pit,’ and (3) discharging “wastes through a pipe into pits at the site’ ” | “discharges that are either nonsudden or nonaccidental block the exception from nullifying the pollution exclusion” | purposeful business activity including burying drums containing wastes and discharging wastes through a pipe into pits was not accidental | pollution exclusion precludes coverage even where liability arises out of conduct of party other than the insured | pollution exclusion prevented coverage for property damage claims arising out of disposal of pollutants at dump site in buried drums, and by dumping and discharging through pipe into pits | discharges which occur over a long period of time and result from intentional, purposeful activity are neither sudden nor accidental within the means ascribed by New York courts | intentional disposal of hazardous wastes in pits, with the ultimate pollution of the environment, is not "accidental" as a matter of law under Technicon Elecs. Corp. v. American Home Assur. Co., 74 N.Y.2d 66, 542 N.E.2d 1048 (1989) | intentional disposal of hazardous wastes in pits, with the ultimate pollution of the environment, is not "accidental” as a matter of law under Technicon Elecs. Corp. v. American Home Assur. Co., 74 N.Y.2d 66, 542 N.E.2d 1048 (1989) | “[T]here is nothing in the language of the pollution exclusion clause to suggest that it is not applicable when the liability is premised on the conduct of someone other than the insured.” | no sudden and accidental pollution where underlying complaint alleged that defendants buried drums containing waste, dumped waste liquid from drums into open pits and discharged waste through a pipe at the site | disposals considered with regard to pollution included buried drums of waste, dumping of waste directly into pit at dumpsite and discharging waste through pipe that lead to dumpsite pit, rather than eventual migration of contamination off site | discharge resulting from purposeful conduct cannot be accidental
Citator
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- 30 opinions
Memorandum.
The order of the Appellate Division should be affirmed, with costs.
This appeal involves a general comprehensive liability insurance policy containing the same "pollution exclusion” clause, and the same exception for "sudden and accidental” dispersals, that we construed in Technicon Elecs. Corp. v American Home Assur. Co. (74 NY2d 66). In Technicon, we noted that the exception to the exclusion for liability arising from pollution is not operative unless the occurrence in question was both "sudden” and "accidental” (id., at 75).
Plaintiff here is seeking a declaration that defendant insurer is obligated to pay "all expenses which plaintiff has paid or will have to pay” in connection with a consent order issued by the Department of Environmental Conservation to decontaminate and restore its property. The action arose out of the leaching of hazardous wastes which were allegedly disposed by plaintiff’s predecessor’s: (1) "burying drums containing the wastes,” (2) "dumping waste liquids from 55-gallon drums into open pits and then disposing of the drums in the pit,” and (3) discharging "wastes through a pipe into pits at the site.” In other words, plaintiff seeks to be indemnified for intentional discharges of waste, leading to the ultimate pollution of the environment. Such an "occurrence,” resulting from purposeful conduct, cannot be considered "accidental” under our analysis in Technicon (id.).
We also reject plaintiff’s contention that since it was not the actual polluter, but merely inherited the problem from the prior landowner, the pollution exclusion clause cannot bar its present insurance claim. Simply put, there is nothing in the language of the pollution exclusion clause to suggest that it is not applicable when liability is premised on the conduct of someone other than the insured. Plaintiff’s reliance on Thomas J. Lipton, Inc. v Liberty Mut. Ins. Co. (34 NY2d 356) is misplaced, since the analysis in that case depended both on a potential ambiguity in the terms of the policy and the conclusion that the insurer’s contrary construction would all but negate the coverage offered by the policy as a whole. Neither of these concerns is presented in this case. As we noted in Technicon, the exclusion clause is "unambiguously plain and operative” (74 NY2d, at 71), and represents only a single discrete exception to the insurer’s obligation to indemnify under the policy.
Order affirmed, with costs, in a memorandum.