Court Opinion

ID: 9635930
Source: CourtListenerOpinion
Date Created: 2023-08-22 14:10:30.314619+00
Date Added: 2024-06-11T18:09:39.043722
License: Public Domain

I dissent. The top page of the insurance policy contains this sentence in bold letters: THIS POLICY DOES NOT PROVIDE POLLUTION LIABILITY COVERAGE The policy contained the following endorsement. Pollution Exclusion It is agreed that the exclusion relating to the actual, alleged, or threatened discharge, dispersal, release, or escape of pollutants is replaced by the following: (1) Bodily injury or property damage arising out of the actual, alleged or threatened discharge, dispersal, release or escape of pollutants. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned, or reclaimed. To me, the language of the pollution exclusion endorsement is clear and unambiguous. After stating that coverage for damage caused by pollutants is excluded, the pollution exclusion endorsement then enumerates a number of categories of substances which are classified as pollutants. The pollution exclusion endorsement states that pollutants means “any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. Waste includes materials to be recycled, reconditioned, or reclaimed.” The policy uses the word “any” before enumerating the categories of types of substances which are pollutants. The word “any” denotes that the terms are not all inclusive and that the terms should not be restricted in their meaning. The policy then lists “waste” as any type of substance excluded as a pollutant under the policy. The endorsement states that “waste includes materials which are to be recycled, reconditioned or reclaimed.” The policy, therefore, does not restrict the meaning of the term “waste” in the pollution exclusion endorsement. As the trial court noted, sewage can be and is recycled at waste treatment facilities on a regular basis. The policy does contain a separate nuclear energy liability exclusion endorsement which is self limiting by its own terms. The endorsement reads: NUCLEAR ENERGY LIABILITY EXCLUSION ENDORSEMENT 2. As used in this endorsement: “Waste” means any waste material (a) containing “byproduct material” other than the tailings or wastes produced by the extraction or concentration of uranium or thorium from any ore processed primarily for its “source material” content, and (b) resulting from the operation by any person or organization of any “nuclear facility” included under the first two paragraphs of the definition of “nuclear facility.” [Emphasis added.] The language of the nuclear energy liability endorsement limits the application of the term “waste” as that language is used in the endorsement solely to the nuclear energy liability endorsement. The language of that endorsement should not be applicable to other endorsements contained in the policy. This is evident by use of the words “as used in this endorsement.” (Emphasis added.) This reading of the language of the nuclear energy liability exclusion endorsement is not in conflict with the language used in the pollution exclusion endorsement and does not create any ambiguity. The pollution exclusion endorsement simply reads that “waste includes any materials which are to be recycled, reclaimed or reconditioned.” Certain equipment and materials referred to in the definition of waste in the nuclear energy liability endorsement can be recycled, reconditioned, or reclaimed. I agree with the trial judge’s findings of fact and conclusions of law wherein he stated: In the case at bar, the policy expressly excludes pollutants such as liquid and solid contaminants. It is undisputed that the underlying Complaint of Howlett involved liquid and solid sewage which by any stretch of the word is classified as a contaminant. This undisputed fact, in itself, excludes Bituminous from defending Plaintiff. Furthermore, the policy excludes waste. Raw sewage, liquid or solid, is “waste.” Reasonable people cannot debate these points. [Emphasis added.] Some 30 years ago, we said in American Homestead Ins. Co. v. Denny, 238 Ark. 749, 384 S.W.2d 492 (1964) that the court must construe the language used by the parties in the contract of insurance in a “common sense” manner by considering the meanings of terms used as they are taken and understood in their plain, ordinary and popular sense. Any reasonable and common sense interpretation of the word “sewage” would classify sewage as a “contaminant.” Since sewage is a “contaminant,” any property damage arising from actual or alleged release or discharge of sewage is excluded under the terms of the policy. The trial court properly granted the judgment in favor of appellee and the judgment of the trial court should have been affirmed.