Title: Fleming v. United Services Automobile Assn.

State: oregon

Issuer: Oregon Supreme Court

Document:

FILED:  November 4, 1999

IN THE SUPREME COURT OF THE STATE OF OREGON

TERRY FLEMING,

		Petitioner on Review,

	v.

UNITED SERVICES AUTOMOBILE
ASSOCIATION, a foreign corporation,

	Respondent on Review.

(CC 9312-08128; CA A86826; SC S44805)

	En Banc

	On review from the Court of Appeals.

	Argued and submitted May 7, 1999.

	William A. Drew, of Bonaparte, Elliott, Ostrander & Preston,
P.C., Portland, argued the cause for petitioner on review.  With
him on the briefs was Robert E.L. Bonaparte.

	Lisa E. Lear, of Bullivant Houser Bailey, Portland, argued
the cause and filed the brief for respondent on review.

	Christopher A. Rycewicz, of Rycewicz & Chenoweth, P.C.,
Portland, filed a brief for amicus curiae United Policyholders. 
With him on the briefs were Brian D. Chenoweth and Paul
Desrochers and John A. MacDonald of Anderson Kill & Olick, P.C.,
Philadelphia, Pennsylvania.

	James E. Horne, of Peery, Hiscock, Pierson, Kingman &
Peabody, PS, Seattle, Washington, filed a brief for amicus curiae
Insurance Environmental Litigation Association. 

	Phil Goldsmith, Portland, filed a brief for amicus curiae
Oregon Trial Lawyers Association.  With him on the brief was
David Nathan Allen, of Macpherson, Gintner, Gordon & Diaz,
Newport.

	William D. Okrent, of Holmes & Rickles, Portland, filed a
brief for amicus curiae National Association of Independent
Insurers.  With him on the brief was John H. Holmes.

	LEESON, J.

	The decision of the Court of Appeals is reversed.  The
judgment of the circuit court is affirmed.

	*Appeal from Multnomah County Circuit Court,

	144 Or App 1, 925 P2d 140 (1996).

	LEESON, J.

	The issue in this case is whether plaintiff is entitled
to insurance coverage for loss to his property caused by the
clandestine operation of an illegal methamphetamine laboratory. 
A jury found that plaintiff was entitled to coverage.  The Court
of Appeals reversed.  Fleming v. United Services Automobile
Assn., 144 Or App 1, 925 P2d 140 (1996).  We allowed plaintiff's
petition for review.  The decision of the Court of Appeals is
reversed.  The judgment of the trial court is affirmed.

	The facts are not contested.  Plaintiff Terry Fleming
and his wife own a 55 percent interest in residential rental
property in Banks, Oregon.  Plaintiff purchased a "Dwelling
Policy" of insurance from United Services Automobile Association
(defendant) for that property.  The policy contains several
sections, including "COVERAGES," "PERILS INSURED AGAINST,"
"GENERAL EXCLUSIONS," and "CONDITIONS."  The section entitled
"PERILS INSURED AGAINST" provides: