5th Circ. Won't Revive Coverage Row Over Acid Leak

Law360 (August 3, 2020, 2:41 PM EDT) -- The Fifth Circuit found that Travelers Indemnity Company of America does not need to cover Burroughs Diesel Inc.'s loss from the leaking of 5,000 gallons of hydrochloric acid, upholding the lower court's ruling that the policy bars coverage for acid pollution.

The three-judge panel said Friday that Burroughs Diesel failed to demonstrate that any exceptions apply to the policy's pollution exclusion, and that the Mississippi federal court did not err in ruling that acids are defined as pollutants and barred by the policy.

The insurance dispute concerns whether the damage caused by smoke produced from hydrochloric acid leaking should be considered...

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