2010 WI App 154
court of appeals of
published opinion
Case No.: |
2009AP2768 |
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Complete Title of Case: |
†Petition for Review filed |
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Joel Hirschhorn and Evelyn F. Hirschhorn,
Plaintiffs-Appellants, v. Auto-Owners Insurance Company, †Defendant-Respondent. |
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Opinion Filed: |
October 19, 2010 |
Submitted on Briefs: |
September 29, 2010 |
Oral Argument: |
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JUDGES: |
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Concurred: |
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Dissented: |
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Appellant |
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ATTORNEYS: |
On behalf of the plaintiffs-appellants, the cause was
submitted on the briefs of Joel Hirschhorn of Hirschhorn & Bieber, P.A., |
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Respondent |
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ATTORNEYS: |
On behalf of the defendant-respondent, the cause was
submitted on the brief of Douglas J. Klingberg of Ruder Ware, L.L.S.C., |
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2010 WI App 154
COURT OF APPEALS DECISION DATED AND FILED October 19, 2010 A.
John Voelker Acting Clerk of Court of Appeals |
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NOTICE |
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This opinion is subject to further editing. If published, the official version will appear in the bound volume of the Official Reports. A party may file with the Supreme Court a petition to review an adverse decision by the Court of Appeals. See Wis. Stat. § 808.10 and Rule 809.62. |
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Appeal No. |
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STATE OF |
IN COURT OF APPEALS |
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Joel Hirschhorn and Evelyn F. Hirschhorn,
Plaintiffs-Appellants, v. Auto-Owners Insurance Company,
Defendant-Respondent. |
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APPEAL
from a judgment of the circuit court for
Before
¶1
BACKGROUND
¶2 The Hirschhorns resided out of state but owned a vacation
home in
¶3 The Hirschhorns filed a property loss notice with Auto-Owners on October 23, 2007. Auto-Owners denied the claim three days later, without conducting an investigation or inspecting the house. The denial letter stated the policy did not cover the accumulation of bat guano[1] because it was “not sudden and accidental” and resulted from faulty, inadequate, or defective maintenance. In a revised position letter dated February 22, 2008, Auto-Owners also cited the policy’s pollution exclusion. By that time, the Hirschhorns had demolished the house and begun construction of a new home.
¶4 Eventually, the Hirschhorns sued Auto-Owners, asserting claims for breach of contract and bad faith. Auto-Owners moved for summary judgment, arguing the loss was not covered because it was not “accidental direct physical loss to covered property” and also because three exclusions applied: (1) faulty or inadequate maintenance, (2) vermin, and (3) pollution. The circuit court denied the motion in an oral ruling, concluding there was coverage.[2] The court observed, “[T]his isn’t a pollution case ….” It continued:
When we talk about pollution, it’s usually a leakage or seeping from a polluted area into some other area causing damage. And we don’t have that same situation here. We have the damage actually being caused by things coming into the structure … which isn’t the same as the traditional pollution cases.
However, after Auto-Owners moved for reconsideration and revised its arguments, the court held that excrement fell into the category of “waste” and, therefore, was a pollutant under the exclusion. Because there was no coverage under the policy, the court also concluded there could be no bad faith claim and dismissed the Hirschhorns’ case. The Hirschhorns now appeal, arguing the circuit court misinterpreted the pollution exclusion.
DISCUSSION
¶5 The interpretation of an insurance policy presents a question
of law that we decide independent of the circuit court. Donaldson v. Urban Land Interests, Inc.,
211
¶6 The Hirschhorns’ policy excludes coverage for “loss resulting directly or indirectly from: … discharge, release, escape, seepage, migration or dispersal of pollutants ….” The policy defines pollutants as “any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, liquids, gasses and waste. Waste includes materials to be recycled, reconditioned or reclaimed.”
¶7 The same pollution exclusion clause was analyzed in both Donaldson
and Peace. In Donaldson, 211
A “contaminant” is defined as one that
contaminates. American Heritage
Dictionary of the English Language 406 (3d ed. 1992). “Contaminate” is defined as “1. To make
impure or unclean by contact or mixture.”
An “irritant” is defined as the source of irritation,
especially physical irritation.
Peace, 228
¶8 Donaldson
was a “sick building” case in which an insurance company sought to exclude
liability for the consequences of an inadequate air exchange system. See Peace,
228
The terms “irritant” and “contaminant,” when viewed in isolation, are virtually boundless, for there is virtually no substance or chemical in existence that would not irritate or damage some person or property. Without some limiting principle, the pollution exclusion clause would extend far beyond its intended scope, and lead to some absurd results.
….
[I]nadequately ventilated carbon dioxide from human
respiration would not ordinarily be characterized as a “pollutant.” Exhaled carbon dioxide can achieve an
injurious concentration in a poorly ventilated area, but it would not
necessarily be understood by a reasonable insured to meet the policy definition
of a “pollutant.”
The reach of the pollution exclusion clause must be circumscribed by reasonableness, lest the contractual promise of coverage be reduced to a dead letter.
It is also significant that, unlike the nonexhaustive list of pollutants contained in the pollution exclusion clause, exhaled carbon dioxide is universally present and generally harmless in all but the most unusual instances. In addition, the respiration process which produces exhaled carbon dioxide is a necessary and natural part of life. We are therefore hesitant to conclude that a reasonable insured would necessarily view exhaled carbon dioxide as in the same class as “smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste.”
¶9 In Peace, the court acknowledged that
lead had many beneficial uses, including its intentional addition to
paints. Peace, 228
¶10 Here, we conclude excreted bat guano is akin to exhaled carbon dioxide, both biologically and as a reasonable insured homeowner would view it regarding the pollution exclusion. One could review the pollution exclusion as a whole and reasonably interpret “pollutant” as not including bat guano excreted inside a house. Therefore, strictly construing the exclusion and resolving ambiguities in favor of coverage, we conclude the pollution exclusion does not eliminate coverage in this case.
¶11 The Hirschhorns argue that, reviewing the exclusion as a whole, a reasonable insured would not understand the accumulation of excreted bat guano in their home’s attic and walls to constitute pollution excludable from coverage. Breaking down the policy language into its parts and reviewing the dictionary definitions of the various terms, Auto-Owners responds that the exclusion is unambiguous because: bat waste is “waste,” the accumulated waste was both a “contaminant” and “irritant” because it gave off an odor so penetrating and offensive that the house had to be razed, and the waste was discharged or released into the home. Again, the policy defines “pollutant” as an:
irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, liquids, gasses and waste. Waste includes materials to be recycled, reconditioned or reclaimed.
¶12 Essentially, the Hirschhorns invoke the ejusdem generis rule, which requires that words in a list be interpreted in light of the other listed terms.[3] The only exemplar in the definition of pollutant here that suggests inclusion of bat guano is “waste.” Indeed, waste can mean excrement. But in the context it is presented here, when a person reading the definition arrives at the term “waste,” poop does not pop into one’s mind. Nor does it come to mind when one continues to the listed items that waste includes.
¶13 While Donaldson recognized the terms
irritant and contaminant are extremely broad, waste is even more so. Review of any comprehensive dictionary
reveals numerous definitions of waste, even when used, as here, as a noun. Eventually, everything is waste. Waste may also be intangible; for example,
there may be wasted time, wasted energy, wasted opportunity, wasted money, and
wasted words. Of course, the policy
definition of waste is informed, and limited by, its context. Reviewing the various dictionary definitions
in that context, the most likely interpretation of waste is: “damaged, defective, or superfluous material
produced during or left over from a manufacturing process or industrial
operation ….” Webster’s Third New International Dictionary
2580 (unabr. Merriam Webster 1993).
Perhaps, the meaning might also include the more general
definitions: “garbage, rubbish.”
¶14 However, waste, in its context here listed as an example of a
pollutant, would not unavoidably be interpreted as excrement. Substituting the terms makes this
evident: “smoke, vapor, soot, fumes,
acids, alkalis, chemicals, liquids, gasses and [excrement].” As the saying goes, “one of these things is
not like the others.”[4]
¶15 The policy definitions of “pollutant” and “waste” are further informed by the policy’s exclusionary clause itself, which omits coverage for the “discharge, release, escape, seepage, migration or dispersal of pollutants.” None of those terms particularly suggest the movement of excrement. Rather, the bodily processes by which wastes such as carbon dioxide, urine, or feces move out of an organism would more commonly be described as respiration, elimination, excretion, or some other term suggesting a biological process. Thus, at best, the clause’s action words do not suggest to the reader a biological process, and they may even suggest that biological processes are not part of the exclusion. Therefore, because a person might reasonably interpret the pollution exclusion as not contemplating bat guano, coverage is not excluded.[5]
By the Court.—Judgment reversed and cause remanded; costs limited.
[1] We assume the bats deposited both feces and urine in the home. Therefore, to be clear, when we refer to “guano,” the term includes both.
[2] Auto-Owners does not cross-appeal and challenge the circuit court’s conclusions that there was an initial grant of coverage or that the maintenance or vermin exclusions did not apply.
[3] Ejusdem generis means:
Of the same kind, class, or nature.
[T]he “ejusdem generis rule” is, that where general words follow an enumeration of … things, by words of a particular and specific meaning, such general words are not to be construed in their widest extent, but are to be held as applying only to persons or things of the same general kind or class as those specifically mentioned.
Black’s Law Dictionary 608 (rev. 4th ed. 1968).
[4] The
popular phrase originated from the educational children’s television show,
[5] After briefing, the Hirschhorns filed “additional authority” consisting of “several articles and statutes” relating to bats and bat guano. Auto-Owners objected pursuant to Wis. Stat. Rule 809.19(11), disputing that the submissions were “pertinent authorities” under Rule 809.19(10). We agree. Further, the Hirschhorns’ cover letter fails to set forth the requisite information. See id. Additionally, the Hirschhorns’ appendix is needlessly lengthy, including nonessential parts of the record, such as complete trial briefs. See Wis. Stat. Rule 809.19(2)(a). Therefore, we strike the Hirschhorns’ “additional authority” filing, and direct that the Hirschhorns shall not recover costs incurred for printing and assembling their appendix. See Wis. Stat. Rules 809.25(1)(a), 809.83(2).