In an article published by Law360, Goldberg Segalla partner Michael A. Hamilton, leader of the firm’s Global Insurance Services team in Pennsylvania, discussed some of the key takeaways and potential ramifications of a major insurance-related ruling.
The article, “Insurer Win in Lead Abatement Row a Blow to Policyholders,” addresses the Ohio Supreme Court’s ruling in Sherwin-Williams Co. v. Certain Underwriters at Lloyd’s London, as the court declared Sherwin-Williams was not owed coverage for its portion of a California abatement fund.
Michael, who contributed to Law360’s previous coverage of the case, noted a liability carrier does not pay out under a policy that addresses future harm or future liabilities, which he believes served as the nexus of the court’s ruling.
“I think the fundamental basis for this court’s ruling is that ‘damages’ doesn’t constitute compensation for future harm,” he told Law360. “With respect to the assessment of insurable damages against an insured, future risks and things that are determined at a later date isn’t really what liability insurance is designed to do; it’s to look to the past and deal with damages for past injuries or past harm.”
Several policyholder attorneys disagreed with the court’s ruling, arguing ambiguities in the law should result in a ruling in favor of coverage. Some also took issue with the court’s definition of “injury,” saying the court “anchored its opinion” that there must be physical harm done to the properties.
Michael countered, suggesting the buildings at issue, including homes and public buildings that contain lead paint, could still be used.
“So, you’re not really suffering a loss of use of the building itself; you’re addressing future harm or remediating down the road,” he said.
Michael added he believes the ruling could affect other similar disputes.
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MORE ABOUT MICHAEL A. HAMILTON:
Michael A. Hamilton handles sophisticated and high-exposure insurance coverage claims and commercial litigation. As a leader of the firm’s Global Insurance Services Pennsylvania team, he focuses his practice on environmental, professional liability, construction defect, transportation, and business torts/advertising injury claims. Michael has been lead defense counsel in class action litigation, representing insurance companies, self-insurers, and transportation entities. He also has extensive appellate experience, arguing numerous appeals in state and federal courts across the country.