Insurers Avoid Obligation to Defend New York Manufacturer, Tonoga, Against PFAS Suits
A five-judge panel in New York state appellate court affirmed a lower court’s ruling that two pollution exclusions apply in Tonoga Inc.’s general liability insurance policies with New Hamshire and Granite State Insurance Cos. From 1961 until 2013, Tonoga manufactured materials coated with nonstick, heat-resistant synthetic polymer polytetrafluoroethylene. Its manufacturing process created byproducts of PFOA and PFOS. In 2016, Tonoga entered into a consent agreement with New York’s Department of Environmental Conservation after high levels of PFOA and PFOS were found in the local municipal water supply. Tonoga sought defense and coverage from the two insurers while facing the DEC administrative proceeding and six other lawsuits. Both policies contained pollution exclusion language barring coverage, to different degrees, for the release of pollutants into the surrounding environment. While Tonoga argued the insurers failed to show that PFOA and PFOA were “pollutants” under the definition of its policies, the lower court and appellate penal held that PFOA and PFOA were pollutants within the meaning of the exclusion, creating no duty to defend the lawsuits.
January 6, 2022 | Tonogo, Inc., Doing Business as Taconic v. New Hampshire Insurance Company, et al, (N.Y. Supreme Court, Appellate Division)
