Methamphetamine contamination is excluded pollution, not “vandalism”
July, 2006
An Oregon trial court recently held that an insurer was not liable for damage resulting from the operation of a methamphetamine laboratory. Kenney v. Farmers Insurance Company of Oregon, Multnomah County No. 05-10-10262.
The policy excluded coverage for damage or loss "consisting of" or "caused by" the release of pollutants or chemicals. The court found the exclusion and loss to be indistinguishable from those in Fleming v. USAA, 144 Or App 1, 925 P2d 140 (1996), rev'd on other grounds 329 Or 449 (1999). In Fleming, the Oregon Court of Appeals held that a similar exclusion for damage caused by "pollutants" precluded coverage for claimed losses from methamphetamine production.
In granting summary judgment for the insurer, the Kenney court also held that methamphetamine was not "vandalism" under the insured's policy. The court's opinion follows a string of other Oregon trial court rulings that reject the characterization of methamphetamine contamination as "vandalism." Farmers Insurance Company of Oregon was represented by Francis J. Maloney III and Beth Cupani of Bullivant Houser Bailey's Portland office.