ExxonMobil Corp. v. Certain Underwriters at Lloyd's, London

In ExxonMobil Corp. v. Certain Underwriters at Lloyd's, London, 15 Misc 3d 1144[A], 841 NYS2d 819, 2007 NY Slip Op 51138[U], 7 [Sup Ct, NY County 2007], the underlying claims related to two products manufactured by ExxonMobil--a polybutylene resin used in water system piping (13 lawsuits) and a lubricant used in aircraft engines (12 lawsuits) (2007 NY Slip Op 51138[U], at 3, 9). The court concluded that claims did not arise out of the "same general conditions" as defined under the policies, reasoning that the "underlying claimants' injuries arose from property damage at several locations, at different times, and for varying lengths of times" (id at 8). Because each of the 13 polybutylene resin related claims occurred in different locations, the court stated that the "continuous exposure clause had doubtful application" (id at 9). Similarly, the 12 lubricant related claims occurred "at all different places in time" (id.). The court emphasized that "the purpose of a continuous exposure clause is to combine claims that occur ... at one location" (id.). The policy in ExxonMobil provided that "all damages arising out of such exposure to substantially the same general conditions existing at or emanating from each premises location of the Assured shall be considered as arising out of one occurrence" (2007 NY Slip Op 51138U at 8). Although the continuous exposure clause contained an additional limitation specifically referring to location, the court purported to explain "the purpose of a continuous exposure clause" (id at 9). The court therefore appears to suggest that continuous exposure clauses focus on one location in general and not just in that case.