AES v. Steadfast - Still No Coverage for Climate Change Tort Suits in Virginia

摘要

The Virginia Supreme Court decision in AES is an important step toward resolving key issues in climate change coverage litigation. In future climate change-related coverage litigation, both insurers and policy-rnholders should be mindful of whether the relevant jurisdiction applies an eight corners approach and an objective or subjective approach to interpreting the term "occurrence." The pollution exclusion and known loss issues also may still need to be litigated depending on if or when new climate change tort claims and related coverage lawsuits are filed in other jurisdictions. In Virginia, the AES decision also has significant implications for the question of coverage in negligence actions inside and outside the climate change context. Both insurers and policyholders should stay abreast of the ongoing development of the jurisprudence in this evolving area of the law.