Erie Owes Imperial Defense Over Emissions: Ill. Court

Law360, New York (September 20, 2011, 6:45 PM EDT) -- Reversing a lower court, an Illinois state appeals court said Tuesday it had ruled that Erie Insurance Exchange must defend Imperial Marble Corp. in an underlying class action alleging injury from the company's manufacturing emissions, finding that a pollution exclusion doesn't bar coverage.

Comparing the underlying allegations to the commercial general liability policy between Erie and Imperial, a panel said it's unclear whether permit-authorized emissions from Imperial's plant constitute traditional environmental pollution that's excluded under the insurance contract.

“Because we must resolve ambiguities in the complaint...
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