Summary
The United States Court of Appeals for the Seventh Circuit held that an Illinois pollution exclusion applied to ethylene oxide emissions associated with Griffith Foods and Sterigenics, barring insurance coverage and National Union's duty to defend. The court rejected the argument that ambiguity in prior Illinois law required a different result and reversed the district court's judgments, remanding with instructions to enter judgment for National Union.
Topics
Practice areas
Questions Presented
- Whether the Illinois Supreme Court's answer to the certified question established that the pollution exclusion in the standard-form commercial general liability policies applied to the ethylene oxide emissions at issue.
- Whether the insureds were entitled to coverage or a defense based on alleged ambiguity in Illinois law before the Illinois Supreme Court answered the certified question.
- Whether the Seventh Circuit should supplement the appellate record with materials concerning National Union's agreement to defend during the appeal.
Holdings
- The pollution exclusion applies to the ethylene oxide emissions at issue because the emissions fit within the plain language and ordinary meaning of traditional environmental pollution; permits or regulations authorizing the emissions do not affect that analysis.
- Griffith Foods and Sterigenics have no claim to coverage and no basis to require National Union to defend them against the allegations in the underlying Master Complaint.
- The court declined to supplement the appellate record with materials that were not before the district court.
Key quotations
“a permit or regulation authorizing emissions (generally or at any particular levels) has no relevance in assessing the application of a pollution exclusion within a standard-form commercial general liability policy.” (2)
“the discharge of EtO emissions into the atmosphere at issue in this case fits squarely within the “plain language” of the pollution exclusion.” (4)
“the emissions fit squarely within the plain and ordinary meaning of ‘traditional environmental pollution,’ triggering the pollution exclusion.” (4)
“a party to add materials to the record on appeal which were not before the district court.” (5)
Factual background
The dispute arose from underlying tort litigation alleging substantial injuries, including cancer, caused by ethylene oxide emissions in Willowbrook, Illinois. Griffith Foods International and later Sterigenics allegedly emitted ethylene oxide over approximately thirty-five years, from 1984 through 2019. National Union's standard-form commercial general liability policies contained a pollution exclusion, and the insureds sought coverage and a defense in the underlying litigation.
Procedural history
The district court entered judgment for Griffith Foods and Sterigenics in their insurance dispute with National Union. In a prior opinion, the Seventh Circuit addressed several issues and certified to the Illinois Supreme Court an important question concerning whether permitted or regulated emissions fall within a standard-form commercial general liability pollution exclusion. After the Illinois Supreme Court answered that a permit or regulation authorizing emissions has no relevance to application of the exclusion, the Seventh Circuit reaffirmed its prior conclusions, reversed the district court's judgment, and remanded with instructions to enter judgment for National Union.
Remand instructions
Reverse the district court's entry of judgment for Griffith and Sterigenics and remand with instructions to enter judgment for National Union in both cases.