Scottsdale Ins. Co. v. Morrow Valley Land Co.
Annotate this CaseSixty-six plaintiffs filed the underlying lawsuit in Tennessee against Morrow Valley Land Company and Ben Cain (Appellees) and others, alleging that Defendants owned and operated a concentrated animal-feeding operation that constituted a nuisance and a continuing trespass. After Appellees' insurer, Scottsdale Insurance Company, refused to provide defense or indemnification coverage under its insurance policy with Appellees, Appellees filed a petition for declaratory judgment in an Arkansas circuit court against Scottsdale and seeking damages for breach-of-contract claims. The circuit court granted partial summary judgment in favor of Appellees, concluding that Scottsdale had a duty to defend Appellees as its insured in the action. The Supreme Court affirmed, holding that the circuit court did not err in finding that the pollution exclusion provision in the insurance policy was ambiguous and that Appellees were entitled to summary judgment on the duty to defend because there was a possibility that the injury or damage may fall within the policy coverage.
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