“When considered in the context of the entire policy here, Atain’s broad interpretation of the Total Pollution Exclusion as it pertains to C.T.’s claims yields an absurd result,” U.S. District Judge Catherine D. Perry of the Eastern District of Missouri said.
A federal judge in Missouri sided with Dollar Tree and liquid breath drops manufacturer Oralabs in an insurer’s declaratory judgment action, finding that a total pollution exclusion did not bar coverage in an underlying products liability suit.
In a Sept. 20 opinion, U.S. District Judge Catherine D. Perry of the Eastern District of Missouri, determined that the plaintiff, Atain Specialty Insurance Co., failed to show that it did not owe coverage or a duty to defend Oralab’s product in underlying litigation brought on behalf of a toddler who consumed the liquid breath drops. The product was distributed and sold by Greenbriar and Dollar Tree, which were also named as defendants.
