ELR Citation: ELR 20127
No(s). 08-1429 (Sup. Ct. Cal. Jun 4, 2009)

A district court held that the pollution exclusion clause contained in a transport company's insurance policy does not cover bodily injuries stemming from the release of a naturally occurring gas. The case arose after dock workers were fatally asphyxiated due to argon leaking from one of the company's containers. While argon gas appears naturally in the atmosphere without causing injury, the concentration allegedly present in the instant case was sufficient to cause death. The hazardous materials exclusion in the company's insurance policy excludes coverage for all damages related to the release of pollutants. But because argon gas is a naturally occurring element present in the air we breathe, it is not a pollutant. Accordingly, the insurer has no duty to defend or indemnify the shipping company for the underlying claims.