Headwaters Resources, Inc. provides coal combustion products management and marketing services to the electric power industry. The company provides fly ash and other by-products of coal combustion and building materials for residential and commercial contractors. ISG operates in two segments: coal combustion products (CCP) management and manufacturing products distribution. The CCP segment purchases, removes, and sells fly ash and other by-products of coal combustion to producers and consumers of building materials and construction related products throughout the United States. The manufacturing products segment manufactures and distributes building materials to residential and commercial co...
10653 South River Front Parkway
South Jordan, UT 84095
Founded in 1997
Over 400 Current and Former Residents of Chesapeake File Two Separate Suits in State Court Against Headwaters Resources Inc
Nov 10 14
The Tenth U.S. Circuit Court of Appeals held the pollution exclusions in an insured's commercial general liability (CGL) policies precluded coverage for two actions alleging property damage and personal injury resulting from the release of toxic fly ash used in the construction of a golf course. The exclusions were unambiguous and negated the insurers' duty to reimburse the insured for expenses incurred in defending the actions. Over 400 current and former residents of Chesapeake, Va., filed two separate suits in state court against Headwaters Resources Inc., alleging property damage and bodily injury resulting from the discharge and dispersal of fly ash used in the construction of a golf course. Headwaters systematically transported the fly ash to an open pit adjacent to residential neighborhoods. Chemicals from the fly ash leached into the groundwater, damaging private wells used for drinking water. In addition, the fly ash pit released airborne contaminants. As a result of the contamination, the property values of the plaintiffs' homes depreciated, and members of the community risked serious bodily injury caused by exposure to the fly ash and its attendant toxins. Headwaters held seven CGL insurance policies issued by Illinois Union Insurance Co. and ACE American Insurance Co. (collectively, the insurers). Under each policy, the insurers were required to reimburse Headwaters for expenses associated with defending suits in which bodily injury or property damage within the scope of coverage was alleged. In the present case, however, the insurers denied coverage for the underlying litigation on the grounds that it fell within the policies' pollution exclusions. Headwaters brought an action in federal court, alleging the exclusions were ambiguous. The district court granted summary judgment in favor of the insurers, finding the exclusions precluded coverage. The Tenth Circuit affirmed the district court's judgment. In so ruling, the Tenth Circuit found certain of the at-issue pollution exclusions unambiguously applied to bar coverage and that the remaining pollution exclusions, although possibly ambiguous, still applied because the complaints unquestionably alleged traditional environmental pollution. As a result, the complaints triggered the pollution exclusions in all of the policies.