Erie Insurance Exchange v. Imperial Marble Corporation

Plaintiff insurer sought declaration of no duty to defend a marble company in action filed by homeowners residing within one mile of its manufacturing plant. Complaint alleged that plant caused pollution and hazardous odorous emissions dispersed into atmosphere by chemicals used in manufacturing processes. Because plant operated pursuant to an emissions permit, it cannot be considered to have expected or intended to injure underlying plaintiffs' persons or properties. Comparing complaint's allegations to policy provisions, it is unclear whether permitted emissions are traditional environmental pollution excluded under policy; thus, resolving ambiguities in favor of insured plant, the insurer has a duty to defend. (SCHMIDT and HOLDRIDGE, concurring.)