Employers Mutual Casualty Co. v. Arbella Protection Insurance
2011 R.I. LEXIS 115
| R.I. | 2011Background
- Destremps sue Viking Stone and Frank Mello for water contamination damaging property across Fish Road in Tiverton, alleging ongoing flooding since 2001.
- Arbella insured Viking Stone from 1999–2002; Employers insured Viking Stone from 2004–2008; both CGL policies define occurrence as an accident including continuous or repeated exposure.
- Destremps sought injunctive relief, damages, and alleged nuisance; complaint stated water from the quarry crossed under Fish Road onto their property.
- Employers filed a petition for declaratory judgment in 2008 seeking a duty to defend/indemnify Viking Stone and arguing only Arbella’s policy could be triggered.
- The Superior Court granted partial summary judgment in Employers’ favor, concluding no duty to defend/indemnify, based on a single pre-2004 occurrence.
- Rhode Island Supreme Court vacated, holding genuine issues of material fact exist regarding whether the flooding was a single occurrence before 2004 or multiple occurrences and whether the Destremps’ allegations support that conclusion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did genuine issues of material fact bar summary judgment on the occurrence issue? | Employers: only one pre-2004 occurrence; precludes Employers’ duty. | Arbella: disputes over causation and whether flooding was a single or multiple occurrences; expert testimony needed. | Yes; factual disputes preclude summary judgment. |
| Whether the Destremps’ flooding constitutes a continuous exposure under the policy definitions | Destremps’ flooding was a single continuous occurrence beginning before 2004. | Flooding could be multiple discrete events; the record shows varied descriptions (continuous vs. continual). | Genuine facts exist; cannot determine as a matter of law. |
| Whether Viking Stone caused flooding by intentional acts or natural flow across Fish Road | Evidence supports Viking Stone’s direct actions to cause water to flow toward Destremps’ property. | Mello testified water flow was natural or not proven to originate from Viking Stone; factual disputes exist. | Material facts remain in dispute. |
| Whether the pre-2004 occurrence can trigger the Employers policy period | Even if pre-2004, the occurrence could extend into the Employers period if continuous exposure occurred. | If the occurrence is pre-2004 and continuous, Employers bears no duty for the pre-2004 damages. | Unable to determine; issues of timing and continuity unresolved. |
Key Cases Cited
- Avco Corp. v. Aetna Casualty & Surety Co., 679 A.2d 323 (R.I. 1996) (contaminants seepage may be described as continuous exposure, but distinguishable facts here)
- Estate of Giuliano v. Giuliano, 949 A.2d 386 (R.I. 2008) (summary judgment standards; issue-finding not issue-determination)
- Delta Airlines, Inc. v. Neary, 785 A.2d 1123 (R.I. 2001) (summary judgment standard applied to factual issues)
- Plainfield Pike Gas & Convenience, LLC v. 1889 Plainfield Pike Realty Corp., 994 A.2d 54 (R.I. 2010) (summary judgment cautious approach; issue-finding purpose)