Big Moose Operations, LLC, doing business as The Big Moose Inn, and BMI Enterprises, LLC v. United Frontier Mutual Insurance Company

Summary

The New York Appellate Division, Fourth Department, modified an order in an insurance coverage dispute arising from a fire at plaintiffs' insured premises. The court held that plaintiffs were entitled to summary judgment on coverage under the policy's Ordinance and Law provision because the pollution exclusion was ambiguous as applied to asbestos and could not be used to defeat coverage. The order was otherwise affirmed, including the rulings concerning Building Inflation Protection and Refrigerated Foods coverage.

Holdings

1. The pollution exclusion was ambiguous with respect to asbestos because asbestos was not specifically included in the policy's definition of pollutant, and applying the exclusion to asbestos would render the policy's specific asbestos exclusion meaningless.
2. Plaintiffs were entitled to summary judgment on their claim for coverage under the Ordinance and Law provision because they established a covered loss resulting from demolition and debris removal required by state and local law.

Questions Presented

1. Whether the policy's pollution exclusion unambiguously excluded coverage under the Ordinance and Law provision for demolition and debris-removal costs associated with asbestos.
2. Whether plaintiffs were entitled to summary judgment on their claim for coverage under the Ordinance and Law provision.
3. Whether defendant was entitled to summary judgment dismissing plaintiffs' Ordinance and Law claim.

Disposition

other