Fairfax Financial Unit Off the Hook for Lead Paint Suit Coverage

A New York appellate panel granted a Fairfax Financial Holdings Ltd. unit’s request to avoid coverage for a “known pollution” suit against a management company, reversing a trial court’s decision.

Paro Management Co. had notice of the underlying lead paint suit prior to the beginning of a scheduled location pollution liability policy issued by Allied World National Assurance Co., according to a five-justice panel decision from the New York Supreme Court, Appellate Division, First Department on Thursday. The opinion reversed a trial court’s denial of Allied’s motion for summary judgment and dismissal.

• The policy contained a “known pollution” exclusion, which ...