Hybud Equipment Corp. v. Sphere Drake Insurance Co.
Ohio Supreme Court
597 N.E.2d 1096 (1992)

- Written by Rich Walter, JD
Facts
Sphere Drake Insurance Company, Ltd. (Sphere Drake) (defendant) insured Hybud Equipment Corporation (Hybud) (plaintiff) under commercial general liability policies that included a standard clause excluding coverage for the release of pollutants, except for “sudden and accidental” discharges. Hybud hauled commercial contaminants to landfills. When the owners of adjoining properties sued Hybud for the years-long leaching of chemicals from Hybud’s waste haulings, Hybud tendered their claims to its insurer. Sphere Drake invoked the pollution-exclusion clause and denied coverage. Hybud sued Sphere Drake, contending that because Hybud neither intended nor expected the leaching problem, the leaching fell within the sudden-discharge exception to the pollution exclusion. The trial and intermediate appellate courts entered judgments for Hybud. Sphere Drake appealed to the Ohio Supreme Court.
Rule of Law
Issue
Holding and Reasoning (Christley, J.)
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