Manufactured Product Potentially Causing Bodily Injury does not Allege Claim of Actual Bodily Injury and does not Provide Coverage
In Medmarc Cas. Ins. v. Avent America, the underlying class action complaint alleged that the plaintiff class purchased baby bottles manufactured by Avent America (“Avent”) that were contaminated with a toxic chemical. Avent failed to disclose that its products contained the toxic chemical and falsely represented that its products were safe. None of the complaints alleged that any particular person sustained any specific injury as a result of the use of Avent’s products.
The insurer, Medmarc Cas. Ins. (“Medmarc”), issued an insurance policy to Avent, as policyholder, providing coverage for bodily injury or property damage. However, the policy excluded property damage or property not physically injured arising out of a defect, deficiency, or dangerous condition in Avent’s product or work.
Medmarc argued that none of the class action claims were covered under the terms of the policies it issued to Avent, because none of the actions sought damages due to bodily injury and none alleged an “occurrence” as defined in the policies. At most, the class claims alleged that Avent’s products created a potential for causing bodily injury.
The court agreed and held that no specific injury, as a result of an occurrence, was alleged. Thus, the class action suits for which Avent sought defense and indemnity were not covered by the policies.
Medmarc Cas. Ins. Co. v. Avent America, Inc., 653 F.Supp.2d 879, (N.D.Ill., 2009).
