MOTORISTS MUTUAL INSURANCE COMPANY, APPELLANT v. RSJ, INC., d/b/a REGENCY ONE HOUR CLEANERS; CENTURY PENSION INCOME FUND XXIII; FOX PARTNERS V, ITS GENERAL PARTNER, APPELLEES, 926 S.W.2d 679

Summary

Appellee insured operated a dry cleaning business. Appellee was sued by its neighbor, which claimed injuries due to the release of carbon monoxide from a leak the vent stack of appellee's boiler. Appellant insurer denied appellee coverage for the injuries based upon a pollution exclusion in its insurance policy. The trial court granted appellee summary judgment requiring appellant to defend appellee in the lawsuit. On appeal, the court affirmed, holding that the pollution exclusion as applied to appellee's claim was ambiguous, and therefore had to be construed against appellant. The court held that given the historical perspective and the continued use of environmental law terminology, an ordinary business person would not have apprehended the provision as excluding coverage for the type of damage incurred through an unexpected leak in a vent pipe. Therefore, because appellee did not knowingly leak carbon monoxide, the pollution exclusion did not apply to bar coverage.