Hiraldo v. Allstate Insurance Co.

Summary

The New York Court of Appeals held that continuous lead-paint exposure constituted one loss under identical liability policies issued by Allstate over three successive policy periods. Because each policy contained a noncumulation clause limiting total liability for one loss to the applicable policy limit, Allstate's liability was limited to $300,000 rather than $900,000.

Holdings

1. Continuous or repeated exposure to lead paint constituted damages resulting from one loss under the identical policy language.
2. The noncumulation clause clearly limited Allstate's total liability for the single loss to the $300,000 limit shown on the declarations page, notwithstanding that three policies were involved.

Questions Presented

1. Whether continuous lead-paint exposure during the terms of three successive Allstate policies constituted one loss subject to a single $300,000 limit or permitted cumulative recovery of $900,000.
2. Whether the policies' noncumulation clause clearly limited Allstate's total liability for the single loss to $300,000.

Disposition

affirmed