Acuity v. Chartis Specialty Ins. Co.Annotate this Case
Acuity, A Mutual Insurance Company and Chartis Specialty Insurance Company both issued liability policies to Dorner, Inc, a construction company. The Chartis policy was a contractors’ pollution liability (CPL) policy, and the Acuity policy was a Comprehensive General Liability (CGL) policy. Acuity defended and indemnified Dorner in four lawsuits seeking recovery for bodily injury and property damage caused by a natural gas-fueled explosion and fire, which occurred after Dorner’s employees damaged an underground natural gas pipeline during an excavation project. Acuity sought reimbursement from Chartis, asserting that Chartis’s CPL policy provided coverage for Dorner in these lawsuits. The circuit court entered summary judgment in favor of Acuity and ordered Chartis to share with Acuity one-half the cost of defending and indemnifying Dorner. The court of appeals reversed, concluding that the claims asserted against Dorner were not covered under the CPL policy. The Supreme Court reversed and remanded to the circuit court to reinstate the judgment in favor of Acuity, holding that Chartis’s CPL policy covered Dorner’s liability arising from the natural gas-field explosion and fire.