Guam Industrial Services, Inc. v. Zurich American Insurance

Dissent by Judge KOZINSKI.

OPINION

This insurance coverage case arises out of the sinking of a dry dock, loaded with barrels of oil, during a typhoon bn Guam. The issues pertain to whether either of two insurance policies covered costs of damage to the dock and the clean up which was accomplished before any of the oil leaked out of the containers into the Pacific Ocean.

Guam Industrial Services, Inc. (“Guam Industrial”) owned the dry dock. At the time of the sinking, one of its insurance policies covered damage to the dock, and one covered liability for property damage caused by pollutants.…