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State v. City of Rhinelander3/25/2003
. The City of Rhinelander appeals a judgment denying coverage for environmental remediation costs under an umbrella policy issued by General Casualty Company of Wisconsin. The circuit court concluded the policy's "owned property" exclusion precluded coverage. We agree and therefore affirm the judgment.
Background
. This appeal is part of a lengthy controversy involving a landfill the City owned until 1980. The State sued the City and other defendants seeking damages and remediation of the landfill, which was leaking contaminants into the groundwater. The parties negotiated a settlement in which the City agreed to pay one-third of the remediation costs with the other defendants paying the rest, and the State forgoing any claims for damages.
. The City then sought coverage under policies issued by General Casualty. In addition to its primary liability policy, the City held an umbrella policy. General Casualty denied coverage under both policies. The circuit court determined no coverage existed under the primary policy because the policy only insured against damages, and remediation costs are not damages under City of Edgerton v. General Cas. Co., 184 Wis. 2d 750, 517 N.W.2d 463 (1994). However, the court found the umbrella policy's coverage for the insured's "ultimate net loss" was broader than damages and included remediation costs. Both parties appealed these determinations and we affirmed. State v. City of Rhinelander, No. 00-2666, unpublished slip op. (Wis. Ct. App. Oct. 2, 2001).
. On remand, General Casualty moved for summary judgment based on the umbrella's "owned property" exclusion. The court granted the motion after it determined the groundwater remediation costs were excluded under the clause and that no coverage existed. The City appeals.
Discussion
. The interpretation of an insurance policy provision in the context of undisputed facts presents an issue of law to which we owe no deference to the conclusions of the circuit court. Danbeck v. American Fam. Mut. Ins. Co., 2001 WI 91, , 245 Wis. 2d 186, 629 N.W.2d 150. The words of an insurance policy are given their common and ordinary meaning. See Henderson v. State Farm Mut. Auto. Ins. Co., 59 Wis. 2d 451, 457-59, 208 N.W.2d 423 (1973). " o avoid rewriting the contract by construction and imposing contract obligations that the parties did not undertake," we enforce plain and unambiguous policy language as written. Danbeck, 2001 WI 91 at 10. We review the grant or denial of a summary judgment de novo, and we apply the same standards as the trial court. Green Spring Farms v. Kersten, 136 Wis. 2d 304, 315, 401 N.W.2d 816 (1987).
. The "owned property" exclusion in the General Casualty policy reads in relevant part: "It is agreed that this policy shall not apply to any liability for personal injury or property damage arising out of ... 3. property damage to property (a) owned by or occupied by or rented to the insured ...." The City concedes that the policy, because of this exclusion, does not cover the cost of remediating the landfill site. Instead, the City contends the policy covers costs associated with preventing or correcting off-site contamination. Thus, the sole issue on appeal is whether the "owned-property" exclusion applies to the City's costs associated with off-site remediation.
. The City contends the exclusion applies only to liability for property owned by the insured. The City argues the settlement required that it remediate groundwater damage on adjacent properties and, therefore, coverage exists for these costs. Alternatively, the City contends the exclusion is ambiguous, that it defeats its reasonable expectations of coverag
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