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ENRON OIL TRADING & TRANSP. v. WALBROOK INS. CO.

No. 96-35713.

132 F.3d 526 (1997)

ENRON OIL TRADING & TRANSPORTATION COMPANY, Plaintiff-Appellant, v. WALBROOK INSURANCE COMPANY, LIMITED; El Paso Insurance Company; Dart Insurance Company Limited; Dart & Kraft Insurance Company; Bryanston Insurance Company; Louisville Insurance Company; Ludgate Insurance Company, Limited; "Winterthur" Swiss Insurance Company; Mutual Reinsurance Company, Limited; Bermuda Fire & Marine Insurance Company; Compagnie Europeene D'Assurances Industrielles S.A.; St. Katherine Insurance Company, Limited; Underwriters at Lloyd's of London, etc., et al., under policy #552/02129100; British National Life Insurance Society, Limited; Insurance Corporation of Ireland, Limited; Yasuda Fire and Marine Insurance Company, Assicurazioni Generali S.P.A.; Lexington Insurance Company; Scan Reinsurance Company, Limited; CNA Reinsurance of London, Limited; Pine Top Insurance Company, Limited; The Dominion Insurance Company, Limited; Folksam International Insurance Company, Limited; Ancon Insurance Company, Limited; Brittany Insurance Company, Limited; Allianz Versicherungs Aktiengesellschaft; Eisen Und Stahl Ruckversicherungs Aktiengesellschaft; Chemical Insurance Company; Employers Insurance of Wausau; Evanston Insurance; Insurance Company of Florida; International Surplus Lines Insurance Company; Granite State Insurance Company; Transit Casualty; Travelers Indemnity Company, Defendants-Appellees.

United States Court of Appeals, Ninth Circuit.

Decided December 23, 1997.

Attorney(s) appearing for the Case

Jean E. Faure and Glenn E. Tremper, Great Falls, Montana, for the plaintiff-appellant.

Patrick R. Watt and Kirk D. Evenson, Great Falls, Montana, for the defendants-appellees.

Before: SCHROEDER and BEEZER, Circuit Judges, and SCHWARZER, Senior District Judge.

SCHWARZER, Senior District Judge.

The principal issue before us is whether, under Montana law, the pollution exclusion in a commercial general liability policy excludes coverage for losses sustained as a result of the addition of a foreign substance to crude oil transported in a pipeline. We hold that it does not.

BACKGROUND

This action was brought by Enron Oil Trading & Transportation Co. ("Enron") in Montana state court against the defendants...

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