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Case Briefs

By ALM Staff | Law Journal Newsletters |
February 28, 2007

Ohio Appeals Court Enforces Absolute Pollution Exclusions

An insurer did not waive its right to deny coverage by defending an insured and settling a number of claims alleging damages from lead contamination, an Ohio appeals court held in enforcing absolute pollution exclusions. The Cincinnati Insurance Co. v. Thomas, Case No. CA2005-12-518, 2006 Ohio App. LEXIS 6449, Court of Appeals of Ohio, 12th Appellate District, Butler County (decided Dec. 11, 2006).

The case arose from development of an old skeet shooting range that was contaminated from lead pellets. The developer, Lexington Manor, Inc., learned of the contamination through an environmental assessment and retained an environmental engineering group to address the soil contamination. As part of the remediation plan, the soil was treated and buried on site, with the environmental firm certifying that the property was suitable for residential development. Lexington Manor sold 46 lots to a homebuilder, which knew of the contamination and remediation, but did not disclose this information to prospective homeowners. Some of the would-be homeowners sued when tests performed on the lots disclosed residual lead contamination.

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