In a recent legal battle, Philadelphia Indemnity Insurance Co. argues that its commercial general liability policy, which includes a pollution exclusion clause, does not offer coverage to the Harper’s Mill Homeowners Association in Richmond, Virginia.
This claim is pivotal to the insurer’s pursuit of a declaratory judgment in federal court, where it aims to establish that it is not liable for lawsuits related to alleged injuries sustained by swimmers due to chemical discharges in the community’s pool.
Incident Overview
The case originates from an incident on June 15, 2022, when Harper’s Mill contracted SwimMetro Management Inc. to manage its swimming pool operations.
On that day, a lifeguard reportedly failed to ensure the proper functioning of the pool’s chemical pumps.
As a result, a dangerous mix of chlorine and muriatic acid was released into the water, creating a toxic environment for swimmers.
At the time of the incident, several patrons were enjoying the pool, and since then, around 15 individuals have come forward with complaints of physical and respiratory issues linked to exposure to the contaminated water.
In February, these concerns led to multiple lawsuits filed in Chesterfield County, targeting both Harper’s Mill and SwimMetro for alleged negligence.
Health Concerns
A representative from the Virginia Poison Center noted that affected individuals reported symptoms such as nausea, coughing, and difficulty breathing—common reactions associated with chlorine exposure.
Harper’s Mill’s commercial general liability policy features a pollution exclusion clause that clearly states it does not cover bodily injuries or property damage arising from the discharge of pollutants.
This definition extends to various harmful substances, including gases and liquids like smoke, chemicals, and waste.
Insurer’s Position
According to Philadelphia Indemnity, the chemicals involved in this incident fall under the category of pollutants as specified in the policy.
The insurer maintains that these substances were introduced to the premises by a contractor linked to Harper’s Mill, and their subsequent release into the community aligns with the policy’s pollution exclusion criteria.
Consequently, Philadelphia Indemnity asserts that it cannot provide coverage for the claims emerging from this ongoing litigation.
The insurer’s declaratory action has been filed in the U.S. District Court for the Eastern District of Virginia, located in Richmond, with the aim of clarifying its lack of obligation in this matter.
Source: Claimsjournal.com
