The Village of Crestwood v. Ironshore Specialty Insurance Company

Illinois Appellate Court
Civil Court
Case Number: 
2013 IL App (1st) 120112
Decision Date: 
February 22, 2013
1st Dist.
Cook Co., 5th Div.
(Court opinion corrected 3/15/13.) Village and its mayor filed declaratory judgment action as to whether three excess public entity general liability insurers owed duties to defend or indemnify against suits that Village knowingly and routinely mixed polluted water into municipal tap water supply to cut municipal expenses. Court properly held that underlying claims fell within absolute pollution exclusion clauses in all insurance contracts. The exclusion itself contains no indication that it is limited to clean-up costs imposed by environmental laws such as CERCLA; exclusion is unqualified and absolute and entirely precludes coverage for bodily injuries or property damage from discharge of pollutants, which is alleged in underlying complaint. (EPSTEIN and PALMER, concurring.)