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Plantation Pipeline Co. v. Royal Indemnity Co.

The plaintiff's insurer had no duty to defend and indemnify the plaintiff for damage caused by petroleum leaks when the plaintiff failed to notify the insurer about the leaks for 25 years.

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This appeal arises out of the trial court’s order granting summary judgment to Royal Indemnity Company “Royal” on the ground that Plantation Pipeline Company “PPL” failed to give proper notice of an occurrence to Royal, as required by insurance policies issued to PPL by Royal. Under the circumstances of this case, we agree with the trial court the delay in providing notice was unreasonable as a matter of law, and we therefore affirm.

The following facts are undisputed. PPL is an interstate common carrier by pipeline of refined petroleum products. Royal issued insurance policies to PPL, one effective from November 30, 1967 to November 30, 1970, and one effective from November 30, 1970 to November 30, 1973. These policies recite that Royal will pay on the insured’s behalf all sums that the insured becomes legally obligated to pay as damages because of bodily injury or property damage “caused by an occurrence.” The policies further define “occurrence” as “an accident, including injurious exposure to conditions, which results . . . in bodily injury or property damage neither expected nor intended” by the insured. Emphasis omitted. The policies also include, in a section labeled “conditions,” the following notice provision:

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