ELR Citation: ELR 21044
No(s). 90-7534 (2d Cir. Dec 26, 1990)

The court holds that an insurance company is not required to indemnify its insured for losses resulting from the release by vandals of fuel oil from the insured's holding tank. The court first holds that a total pollution exclusion clause in a certificate of insurance issued to the insured and dated the date of the oil spill was part of the insured's policy. The insured concedes in its amended answer and in its counterclaim that the policy included the endorsement. The court next holds that the endorsement controls whether the insurance company was obligated to indemnify its insured, because it is undisputed that the endorsement supersedes the policy's clause allowing claims for sudden and accidental discharges. The court holds that the plain meaning of the endorsement precludes coverage for the oil spill. Finally, the court holds that the insured had both constructive and actual knowledge of the terms of the policy, since the insured's agent testified that he was aware the policy did not include pollution coverage and that he informed the insured of this.

Counsel for Appellant
Jonathan J. Einhorn
412 Orange St., New Haven CT 06511
(203) 777-3777

Counsel for Appellee
Robert G. Oliver
Mulvey, Oliver, Gould & Riccio
83 Trumbrull St., New Haven Ct 06511
(203) 624-5111