Water as a Pollutant

The United States District Court for the Eastern District of Virginia had to consider whether water would be considered a pollutant, and whether the damage claim arising out of the water would not be covered due to the pollution exclusion. This case is Nationwide Mutual Insurance Company v. Boyd Corporation, 2010 WL 331757 (E.D.Va.).

The underlying dispute concerns coverage for alleged damages caused to an adjacent property by land development in Virginia . Boyd, a builder and land developer, developed approximately 100 acres on land owned by Ramblewood Forest , LLC. The Lucks are owners of property adjacent to this land being developed by Boyd. In 2003, the Lucks began expressing concern with the impact of the development on a three acre recreational pond and bordering wetlands on their property. They requested Boyd place a turbidity curtain across the upper end of the pond. Boyd did so but the water runoff continued and the county inspector reported that the turbidity curtain was improperly installed and required repair. Boyd said that it would be corrected, but the problems continued through 2007.