Steptoe Wins Appellate Victory in Insurance Coverage/Toxic Tort Case

Frank Winston and John Casciano recently won a major appellate victory for client The Travelers in the US Court of Appeals for the Fifth Circuit in Acceptance Ins. Co., et al. v. Powe Timber Co., No. 06-60216 (5th Cir. Feb. 21, 2007).

Powe Timber, a manufacturer of industrial wood flooring in Mississippi, sought over $26 million in insurance coverage from Travelers subsidiaries USF&G and F&GIU for over 2,000 toxic tort claims pending in Mississippi state and federal courts alleging bodily injury from exposure to toxic wood waste blocks generated during Powe Timber's manufacturing process.

The Fifth Circuit affirmed the decision of the US District Court for the Southern District of Mississippi that USF&G and FGIU had no duty to defend or indemnify Powe Timber for the claims at issue on the ground that the claims did not involve losses due to or caused by an "occurrence" under Mississippi law, and as required by the insurance policies at issue.