Admiral Insurance Company v. Feit Management Company, Terra Cotta Place Apartments, Inc., a Florida Corporation

HILL, Circuit Judge:

Insurance companies filed a declaratory judgment action, under our diversity jurisdiction, seeking a determination as to the applicability of the pollution exclusion clause and the exception to it found in various insurance contracts. The district court found coverage, and the insurers appealed.

I

In January of 2000, carbon monoxide fumes, from an improperly vented water heater in an apartment complex, flowed into the attic space and then through the HVAC (heating, ventilating and air conditioning) system of the apartments, and finally into the individual apartments. The…