Case Briefs

The Virginia Supreme Court held in The AES Corp. v. Steadfast Insurance Co., 2011 WL 4139736 (Va. Sup. Ct. Sept. 16, 2011) (“Steadfast“) that an insurer was not obligated to defend or indemnify its insured against a lawsuit alleging that the insured's actions resulted in climate change. The decision was based, in large part, on the fact that the underlying plaintiff alleged that the insured knew or should have known that its emission of carbon dioxide and greenhouse gases would harm the plaintiff. Because the plaintiff alleged intentional conduct ' not a fortuitous event or accident ' the court held that the claim was not covered. There may be more to come, however, as the court has recently allowed a request for rehearing. No date has been set as of press time.