Insurance loophole claimed in fire deaths
December 17, 2008
An insurance company with a potential $25 million liability from a 2007 Houston office fire is claiming smoke that killed three people was “pollution” and surviving families shouldn’t be compensated for their losses since the deaths were not caused directly by the actual flames.
Great American Insurance Company is arguing in a Houston federal court that the section of the insurance policy that excludes payments for pollution — like discharges or seepage that require cleanup — would also exclude payouts for damages, including deaths, caused by smoke, or pollution, that results from a fire.
“This is shocking. It’s an extraordinary effort by an insurance company to avoid paying on a contract for insurance,” said Randy Sorrels, who represents several family members in wrongful death lawsuits from the fire in a six-story atrium building on the North Loop.
Great American has asked U.S. District Judge Lee Rosenthal to find that the deaths caused by the smoke, fumes and soot from the March 2007 fire set by a nurse working in the building will not be covered by the policy because there is a specific exclusion for pollution and it mentions smoke, fumes and soot.
Read Article: Houston Chronicle
Posted By: Phoenix DUI Attorney
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