Travelers Property Casualty v. Christopher A. Klick
2017 U.S. App. LEXIS 15017
| 8th Cir. | 2017Background
- Klick was poisoned by carbon monoxide while on a friend’s 25-foot fishing boat; two others died and Klick suffered severe injuries.
- The boat’s exhaust pipe had broken, directing carbon monoxide into an enclosed engine compartment beneath an open-backed wheelhouse; carbon monoxide later entered the wheelhouse and rendered Klick unconscious, causing him to fall into the engine compartment and be burned.
- Klick sued the boat dealer (Rainy River and Choice) in state court; the dealer had a marine general liability policy from Travelers that covered bodily-injury liability but contained a pollution exclusion for injury "arising out of" release, dispersal, migration, emission, etc., of "pollutants" into "atmosphere."
- Travelers sought a federal declaratory judgment that the pollution exclusion precluded coverage for Klick’s injuries; the district court granted summary judgment for Travelers.
- Parties agreed Minnesota law applies; carbon monoxide is undisputedly a "pollutant." The core dispute: whether Klick’s injuries "arose out of" the pollutant’s release into "atmosphere," given the shipboard facts and the policy language.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the pollution exclusion applies because injuries "arose out of" pollutant release into "atmosphere" | Klick: injuries arose from release into the engine compartment, not from release into "atmosphere"; engine compartment (and possibly wheelhouse) not "atmosphere" | Travelers: pollutant migrated from engine compartment into the (open) wheelhouse—ambient air—so injuries causally connected to release into "atmosphere" and exclusion applies | Held: exclusion applies; injuries causally connected to pollutant release into wheelhouse atmosphere |
| Whether "arising out of" requires proximate cause or only causal connection | Klick: implies closer causal nexus to original release into engine compartment | Travelers: Minnesota law treats "arising out of" as broader causal connection, not proximate cause | Held: "arising out of" = causally connected; multiple causal contributors suffice |
| Whether "atmosphere" excludes interior air (per Board of Regents) | Klick: wheelhouse is interior/controlled environment, so "atmosphere" (ambient air) does not include it | Travelers: wheelhouse was open-backed and exchanged air with outside, so a reasonable insured would view it as "atmosphere" | Held: wheelhouse was ambient air; "atmosphere" includes that space here |
| Whether pollution exclusion limited to initial release vs. subsequent migration/dispersal | Klick: exclusion should not apply if injury stems from initial release into engine compartment | Travelers: exclusion covers release, dispersal, migration—includes movement into wheelhouse | Held: exclusion covers subsequent dispersal/migration; not limited to initial release |
Key Cases Cited
- Farmers Home Mut. Ins. Co. v. Lill, 332 N.W.2d 635 (Minn. 1983) (policy terms interpreted in plain, ordinary sense and from insured's perspective)
- Gen. Cas. Co. of Wis. v. Wozniak Travel, Inc., 762 N.W.2d 572 (Minn. 2009) (coverage terms construed broadly; exclusions construed narrowly)
- Henning Nelson Constr. Co. v. Fireman’s Fund Am. Life Ins. Co., 383 N.W.2d 645 (Minn. 1986) (insurer bears burden to prove exclusion applies)
- Midwest Family Mut. Ins. Co. v. Wolters, 831 N.W.2d 628 (Minn. 2013) (carbon monoxide qualifies as a "pollutant")
- Meadowbrook, Inc. v. Tower Ins. Co., 559 N.W.2d 411 (Minn. 1997) ("arising out of" means causally connected rather than proximate cause)
- Faber v. Roelofs, 250 N.W.2d 817 (Minn. 1977) (definitional support for causation standard in "arising out of")
- Bd. of Regents of Univ. of Minn. v. Royal Ins. Co. of Am., 517 N.W.2d 888 (Minn. 1994) ("atmosphere" read as "ambient air," not controlled interior air)