Calif. Court Affirms Judgment for State Farm on Pollution Exclusion

MENDOCINO, Calif. - A California appeals court has affirmed summary judgment for an insurer that cited a pollution exclusion in denying a defense and indemnification to a compost facility sued by neighbors over alleged odors, dust and mold. Cold Creek Compost, Inc. v. State Farm Fire and Casualty Co., No. A114623 (Calif. Ct. App., 1st Dist.).

The Court of Appeals' 1st Appellate District said in its Nov. 20 opinion that its ruling is consistent with prior appellate holdings that widespread dissemination of dust particles and objectionable odors constitute environmental pollution within the meaning of the exclusion.

Cold Creek Compost Inc. …