INSURANCE LAW
United States Court of Appeals (2023)
Catherine Cole
In Estate of Wheeler v. Garrison Property & Casualty Insurance Co., 80 F.4th 1006 (9th Cir. 2023), the court of appeals held that certification to the Alaska Supreme Court was warranted to answer whether the scope of the pollution exclusion in a homeowners’ insurance policy includes carbon monoxide. (Id. at 1011). A young man died in a cabin due to acute carbon monoxide poisoning, and his family brought claims against the homeowners. (Id. at 1007). The homeowners’ insurance policy included a total pollution exclusion. (Id. at 1008). The homeowners admitted fault, submitted an insurance claim, and signed the rights to pursue coverage claims to the family. (Id). The appellee insurance company successfully argued in the district court that the claim fell within the pollution exclusion. (Id.). The court decided to issue a certified question because, as a case of first impression, there is no controlling precedent to indicate the Alaska Supreme Court’s conclusion. (Id. at 1011). The court of appeals further recognized a split amongst other state courts, in part because these types of cases are usually based on fact-specific elements, with unique precedent developed over time. (Id. at 1008–09). Some state courts find the exclusion unambiguous while other courts restrict the exclusion’s reach to only include traditional environmental pollution. (Id. at 1008). The court of appeals held that it is necessary to certify the question of whether carbon monoxide falls within the pollution exclusion to the Alaska Supreme Court and temporarily stay proceedings. (Id. at 1011).
