Insurance Client Victory

Frank Winston and John Casciano obtained summary judgment on behalf of clients United States Fidelity and Guaranty Company and Fidelity and Guaranty Insurance Underwriters in the US District Court for the Southern District of Mississippi in Acceptance Ins. Co., et al. v. Powe Timber Co., Inc., No. 4:04CV133LN (S. D. Miss.) on November 30, 2005.

Powe Timber Company had sought coverage for nearly 2,000 toxic tort claims pending in Mississippi state and federal courts alleging bodily injury due to exposure to Powe Timber's creosote-treated waste wood, and had demanded defense and indemnity from USF&G and FGIU under multiple primary liability insurance contracts. 

The Federal District Court held that USF&G and FGIU had no duty to defend or indemnify Powe Timber for the claims at issue. 

In so ruling, the Court determined that

1. the underlying claims at issue did not involve losses due to or caused by an "occurrence" as required by the policies; and
   
2. the pollution exclusions in the USF&G and FGIU contracts applied to preclude any potential for coverage.