Everest Insurance Must Defend Pollution Claims Against Texas Mining Co., Federal Judge Rules

HOUSTON — A Texas federal judge has ruled that Everest Insurance Co. must defend a mining company against claims that it discharged materials into waterways, causing them to flood during Hurricane Harvey, because the policy’s pollution exclusion does not apply.

On Oct. 7, Judge Andrew S Hanen of the U.S. District Court for the Southern District of Texas adopted a magistrate judge’s findings that “silt, sand, sediment and construction materials” are not “pollutants” for the purposes of the exclusion.

Everest seeks a declaratory judgment that it is not obligated to defend Megasand Enterprises Inc. in three consolidated lawsuits in which …