City of San Buenaventura v. The Ins. Co. of PA

This appeal was consolidated from lawsuits brought by the City against two insurance companies. Both insurers rejected the City's claims for coverage for the underlying litigation between the City and condominium buyers. The insurers claimed that the City's alleged negligence and wrongful conduct in connection with the underlying litigation occurred prior to their policy periods. The district court agreed and granted summary judgment in favor of the insurers. The court rejected the City's argument for extending Montrose Chemical Corp. v. Admiral Insurance Co., which held that claims for pollutants deposited in the ground prior to the policy period, but continuing to leach into soil and groundwater during the policy period, gave rise to a duty to defend, because continuance of the property damage during the policy period gave rise to coverage. View "City of San Buenaventura v. The Ins. Co. of PA" on Justia Law