State Farm Off The Hook In Asbestos Coverage Dispute

Law360, New York (August 18, 2011, 2:47 PM EDT) -- A California appeals court on Wednesday upheld a victory for State Farm General Insurance Co. in a coverage dispute with a homeowners association, ruling that asbestos contamination at a condominium building fell under an environmental pollution exclusion.

Though it ruled in favor of the insurer, the court extended a state Supreme Court decision restricting the scope of pollution exclusions in general liability policies to first-party property policies, rejecting State Farm's assertion that first-party policies are not covered by that ruling.

The case stems from plaintiff Villa...
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