NJ Court Denies Pollution Suit Coverage For Heating Oil Co.

Law360, New York (June 8, 2012, 7:15 PM EDT) -- A New Jersey appeals court on Friday refused to revive a heating oil delivery company's suit for pollution litigation defense costs against a state guaranty entity for insolvent insurers, rejecting arguments that a lower court erred by looking beyond the face of the underlying complaint.

Spartan Oil Co.'s claim against the New Jersey Property-Liability Insurance Guaranty Association was trumped by a policy exclusion precluding coverage for discharged pollutants after they are “finally delivered,” the appeals court found, backing summary judgment for the association.

“Because Spartan had...
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