Church Mutual Insurance v. Clay Center Christian Church, 746 F.3d 375

Greens appeal district court's grant of summary judgment for Church Mutual denying coverage due to pollution exclusions in multi-peril and umbrella policies after carbon monoxide exposure at the parsonage.
John Green died and Cheryl Green was injured from a November 2009 CO release; policies define pollutants broadly and exclude pollution-related bodily injury.
Church Mutual filed declaratory judgment; consent agreement in 2012 assigned Church's insurance rights to Greens.
District court held the pollution exclusions unambiguous and CO a pollutant; Greens' estoppel theory rejected.
On appeal, this court reviews policy interpretation de novo and Nebraska law governs; CO is a pollutant; no estoppel due to lack of prejudice.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Are the pollution exclusions ambiguous?	Greens argue irritant/contaminant are ambiguous.	Church Mutual argues exclusions are unambiguous; CO is a pollutant.	Unambiguous; CO is a pollutant; exclusions apply.
Was the district court proper in excluding the Greens' expert on CO as pollutant?	Greens contend expert testimony was relevant to interpretation.	Policy interpretation is a question of law; expert testimony unnecessary.	District court did not abuse discretion; policy interpretation governs.
Did Nebraska estoppel require prejudice for delay in reserving rights?	Delay plus control of defense shows prejudice; estoppel should apply.	No prejudice; consent agreement eliminated exposure and harm; no estoppel.	No prejudice established; no estoppel; summary judgment affirmed.

Cincinnati Insurance Co. v. Becker Warehouse, Inc., 635 N.W.2d 112 (Neb. 2001) (pollution exclusion broad and unambiguous; not limited to traditional environmental claims)
State Farm Fire & Casualty Co. v. Dantzler, 842 N.W.2d 117 (Neb. Ct. App. 2013) (pollution exclusion interpretation applied to CO case)
Harleysville Insurance Group v. Omaha Gas Appliance Co., 772 N.W.2d 88 (Neb. 2009) (polution exclusion definition of pollutants discussed)
Bruecks v. National Union Fire Insurance Co., 139 N.W.2d 821 (Neb. 1966) (presumption of prejudice where insurer controls matter without reservation)
Bank of Bellevue v. First Am. Title Ins. Co., 496 N.W.2d 474 (Neb. 1993) (prejudice element in estoppel based on insurer's control without reservation)
Sargent Construction Co., Inc. v. State Auto Insurance Co., 23 F.3d 1324 (8th Cir. 1994) (insurance contract interpretation guidance adopted in context)
First Realty, Ltd. v. Frontier Insurance Co., 378 F.3d 729 (8th Cir. 2004) (policy interpretation and ambiguity considerations cited)