02-2322 State, et al. v. City of Rhinelander

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“The exclusion’s unambiguous language precludes coverage for any off-site remediation costs. Both the on- and off-site contamination are ‘property damage.’ The off-site contamination has more than some causal relationship to the on-site contamination; the adjacent land would not have been harmed but for the damage to the landfill. Thus, the off-site contamination is property damage that arises out of property damage to property owned by the insured. Remediation costs for off-site contamination are excluded by the ‘owned property’ exclusion.

“We are not persuaded by the City’s argument that the ‘arising out of’ language applies only ‘to property’ owned by the insured. We understand this argument to be that the exclusion only precludes coverage for damages to the City’s own property. This interpretation, however, ignores the policy’s plain language. The exclusion applies to liability for property damage arising out of property damage to the insured’s own property. If we were to accept the City’s interpretation, we would have to ignore the exclusion’s first use of the phrase ‘property damage’ as well as the ‘arising out of’ language.”

Judgment affirmed.

Recommended for publication in the official reports.

Dist III, Oneida County, Kennedy, Sr. Reserve Judge, Cane, C.J.

Attorneys:

For Appellant: James P. Lonsdorf, Wausau; Phillip I. Parkinson, Rhinelander

For Respondent: Robert F. Johnson, Milwaukee; Heidi Vogt, Milwaukee