Simpson Thacher Secures Victory in Ohio Supreme Court in Public Nuisance Coverage Suit
12.16.24
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Simpson Thacher secured a victory for clients Travelers, St. Paul Fire & Marine Insurance Company and Gulf Insurance Company against claims for insurance coverage by Sherwin-Williams in Ohio.
In a ruling on December 10, the Ohio Supreme Court found that insurers for Sherwin-Williams do not have to cover the paint-maker's portion of a $305 million settlement to abate lead paint in California homes, finding the payment does not qualify as damages under its commercial general liability policies. The dispute stemmed from a public nuisance suit filed by 10 California counties and cities against Sherwin-Williams and others in 2000 for their role in the public health crisis caused by the use of lead paint. The paint-makers were ordered in 2014 to pay $1.15 billion into a lead paint abatement fund before ultimately agreeing in July 2019 to a $305 million settlement.
An Ohio trial court had previously granted summary judgment in favor of the insurers, which was later overturned by the Eighth Appellate District in September 2022. The Ohio Supreme Court reversed the Eighth Appellate District's ruling and reinstated the trial court's grant of summary judgment, finding that because the abatement fund payment was intended to prevent future harm, not compensate for past harm, the payment did not constitute damages because of bodily injury or property damage under the policies.
The Simpson Thacher team included Bryce Friedman, Matthew Penny and David Balme.