Regan Heating and Air Conditioning, Inc. v. Arbella Protection Insurance Company, Inc.

Summary

The Rhode Island Supreme Court reviewed a judgment granting summary judgment to Arbella Protection Insurance Company in a coverage dispute arising from a home heating oil spill. The court held that the insurance policy’s pollution definition was ambiguous as applied to the alleged basement property damage and that the policy’s total pollution and limited heating-equipment endorsements did not conflict. The court vacated the Superior Court judgment, directed entry of judgment for Regan on specified counts, and remanded for further proceedings.

Holdings

1. The total pollution exclusion endorsement and the limited building-heating-equipment endorsement must be read independently and do not conflict or render the policy ambiguous.
2. The policy's definition of pollution was ambiguous as applied to O'Donnell's claims arising from home heating oil leaking into a residential basement, and the policy therefore must be strictly construed in favor of Regan.
3. The Superior Court erred in granting Arbella's motion for summary judgment and denying Regan's motion for summary judgment because the pollution definition was ambiguous as applied to the underlying claims.

Questions Presented

1. Whether the total pollution exclusion endorsement and the limited building-heating-equipment endorsement conflicted and thereby rendered the insurance policy ambiguous.
2. Whether the policy's definition of pollutants was ambiguous as applied to home heating oil that leaked into a residential basement and caused property damage.
3. Whether the Superior Court properly granted Arbella summary judgment and denied Regan summary judgment.

Disposition

vacated