City Fuel Corp. v. National Fire Insurance

In this case, we are called on to resolve a dispute regarding the interpretation of a pollution liability indorsement and a pollution exclusion clause, both contained in a commercial automobile insurance policy issued to City Fuel Corp. (City Fuel) by National Fire Insurance Company of Hartford (National Fire). The policy covered City Fuel’s oil delivery *639trucks. The indorsement provided coverage for damages arising out of the release of pollutants “[b]eing transported” by such trucks, or “[o]therwise in the course of transit by or on behalf” of City Fuel.

A controversy arose when approximately…