Insurance Law
Insurer Drops Smoke = ‘Pollution’ Claim in $25M Fatal Office Fire Litigation
Posted Jan 22, 2009, 11:29 am CST
By Martha Neil
An insurance company fighting to avoid paying a claim in a fatal Houston 2007 office fire that could involve damages of $25 million is reportedly dropping its effort to apply the pollution exclusion in its policy for the property to the smoke, fumes and soot that killed three people.
But although Great American Insurance Co. won't continue to seek a declaratory judgment in federal court that the pollution exclusion applies, the insurer and the building owner are still expected to defend wrongful death claims by arguing that they aren't legally responsible for the injuries because the fire was intentionally set by a third party, according to the Houston Chronicle.
A nurse working in the building who reportedly set the fire to cover up the fact that she was behind on her paperwork is now serving a 25-year prison term for felony murder and arson.
Attorney Randy Sorrels, who is representing some of the plaintiffs in wrongful death litigation, tells the newspaper he expects to prove there were code violations and an inadequate warning system in the office building. However, attorney Don Jackson, who is representing the property owner, says he expects to show that the building was safe and that the fire deaths, hence, were entirely the fault of the arsonist.
Great American is an excess carrier which contracted to provide coverage for the office building after underlying primary liability insurance policy limits are exhausted.
Earlier ABAJournal.com coverage:
Insurer Applies ‘Pollution’ Exclusion in Fire Deaths from Smoke Inhalation
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