Century Surety Co. v. Casino West, Inc.
2012 U.S. App. LEXIS 6958
| 9th Cir. | 2012Background
- Casino West motel deaths from acute carbon monoxide poisoning; policy issued to Casino West by Century Surety; pollution and indoor air quality exclusions at issue; insurer denied coverage following autopsy reports and estates' suits; district court found exclusions ambiguous; Ninth Circuit interlocutory appeal sought to certify Nevada law questions; district court certified questions and stayed proceedings; Ninth Circuit granted interlocutory appeal to decide whether to certify Nevada law questions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the pollution exclusion exclude CO exposure claims? | Century: pollution exclusion covers pollutants including CO. | Casino West: CO may not be pollution; ambiguity favors insured. | Questions certified; no final ruling on coverage. |
| Does the indoor air quality exclusion exclude CO exposure claims? | Century: exclusion applies to indoor air quality effects from toxins. | Casino West: CO may not fall within indoor air quality exclusion. | Questions certified; no final ruling on coverage. |
Key Cases Cited
- Powell v. Liberty Mut. Fire Ins. Co., 127 Nev. 14 (Nev. 2011) (ambiguous policy terms construed against insurer; plain meaning controls when unambiguous)
- Apana v. TIG Ins. Co., 574 F.3d 679 (9th Cir. 2009) (pollution exclusion scope varies across jurisdictions)
- Progressive Gulf Ins. Co. v. Faehnrich, 627 F.3d 1137 (9th Cir. 2010) (certification of state-law questions permitted when outcome depends on state law)
- Siggelkow v. Phoenix Ins. Co., 109 Nev. 42 (Nev. 1993) (read policy as a whole; give terms ordinary meaning)
- Reno Club, Inc. v. Young Inv. Co., 64 Nev. 312 (Nev. 1947) (avoid absurd results; interpret policy in ordinary sense)