Two related applications addressed whether a commercial general liability insurer owed a duty to defend or indemnify its insured gas station operators for environmental contamination claims brought by a landlord.
The landlord sought a declaration requiring the insurer to indemnify the tenants, while the insurer sought a declaration that its policy provided no coverage.
The court held that the landlord, as a stranger to the insurance contract, could not pursue indemnification before obtaining judgment against the insured under s. 132 of the Insurance Act.
Interpreting the policy wording and pollution exclusion clauses, the court found the claim fell squarely within the policy’s pollution exclusions.
The insurer therefore had no duty to defend or indemnify the tenants in the underlying environmental contamination action.
