Nicholas Gellert was quoted in the Law360 article, "Wash. Justices' Causation Ruling Curbs Pollution Exclusions," regarding Washington state's high court ruling that a pollution exclusion doesn't negate liability coverage where negligence is the primary cause of a loss, a ruling that drastically curtails insurers' ability to wield such exclusions to deny policyholders a defense against lawsuits alleging negligent conduct.

However, attorneys who represent policyholders praised the court's reasoning. Nicholas Gellert said the decision benefits insureds by clamping down on insurance companies' attempts to draft exclusionary language to get around the efficient proximate cause doctrine.

"The Washington Supreme Court's ruling is a double whammy for insurance companies: confirming the broader application of the efficient proximate cause doctrine and also reasserting its previously stated view that insurance companies can't create policy language to contract around the doctrine," Gellert said.

Moreover, the Washington justices found that ProBuilders' refusal to defend was in bad faith because it failed to recognize the possibility that a covered negligent act was the predominant cause of Xia's injuries. According to Gellert, that aspect of the decision puts insurers "on very firm notice of the consequences of not conducting a sufficient investigation."