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State Auto Property & Casualty Ins. Co. v. Arkansas Dep't of Envtl. Quality

ELR Citation: 37 ELR 20165
Nos. No. 06-1480, (Ark., 06/14/2007)

The court reversed a lower court's grant of summary judgment against an insurance company for underlying claims concerning groundwater and soil contamination stemming from a gasoline station's leaking fuel-dispensing system. The lower court did not err in finding that the policy was ambiguous as to whether gasoline was excluded under the policy's pollution exclusion clause. The insurance company, however, submitted extrinsic evidence in favor of its interpretation that gasoline was excluded under the policy. The lower court should have considered that evidence to resolve the ambiguity, but it did not. The case was therefore reversed and remanded.