In Georgia Stormwater is a Pollutant
Stormwater Alone—Even Uncontaminated—Constitutes a Pollutant
Post 5186
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In Auto-Owners Insurance Company v. Tabby Place Homeowners Association, Inc., et al., Civil Action No. 4:21-cv-346, United States District Court, S.D. Georgia (September 3, 2025) found no coverage.
The decision of the USDC presents a detailed judicial opinion on a declaratory judgment action involving Auto-Owners Insurance Company, Tabby Place Homeowners Association (HOA), and various property owners. The central issue concerned whether Auto-Owners had a duty to defend or indemnify the HOA in an underlying lawsuit brought by property owners alleging property damage from stormwater flooding linked to the HOA’s stormwater retention ponds.
BACKGROUND AND PARTIES INVOLVED
The underlying litigation involved property owners adjacent to the Tabby Place and Captain’s Cove Subdivisions on St. Simons Island, Georgia, alleging that the design, construction, and maintenance of stormwater retention ponds caused flooding and damage to their properties. The HOA acquired ownership of the retention ponds in September 2020, after the property owners filed their initial lawsuit in 2019. Auto-Owners issued two insurance policies to the HOA in April 2019: a Commercial General Liability (CGL) Policy and a Commercial Umbrella Policy, which are at issue in this declaratory judgment action. Auto-Owners sought a declaration that it has no duty to defend or indemnify the HOA based on policy exclusions, primarily the pollution exclusions, while the HOA and property owners contest this position.
INSURANCE POLICIES AND COVERAGE DISPUTE
The CGL Policy and Umbrella Policy provide coverage for property damage and personal injury but contain exclusions, including pollution exclusions. Both policies exclude coverage for property damage arising from the discharge, dispersal, seepage, migration, release, or escape of “pollutants.” The policies define “pollutant” broadly as “any solid, liquid, gaseous or thermal irritant or contaminant,” including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste.
Auto-Owners contended that the stormwater flooding alleged in the underlying lawsuit qualifies as damage caused by pollutants under the pollution exclusions, thereby barring coverage. Auto-Owners also argued that the insurer’s duty to defend is triggered only if the claims potentially fall within coverage, and here the pollution exclusions unambiguously apply.
LEGAL ANALYSIS: WHETHER STORMWATER CONSTITUTES A POLLUTANT
The primary legal question is whether stormwater, including stormwater infiltrating into groundwater, qualifies as a “pollutant” under the policies’ pollution exclusions. The court reviewed relevant Georgia law and precedent, noting that courts have consistently held that stormwater alone—even uncontaminated—constitutes a pollutant under similar insurance exclusions. The court rejected arguments that stormwater must be contaminated to qualify as a pollutant or that rising groundwater is excluded from the pollution exclusion.
The court further found no meaningful distinction between direct stormwater runoff and stormwater that infiltrates through the ground and raises groundwater levels, as both scenarios involve the discharge or migration of stormwater, which is a pollutant under the policies. The court cited multiple precedents from Georgia federal courts supporting this interpretation.
PROCEDURAL POSTURE AND MOTIONS FOR SUMMARY JUDGMENT
Three motions for summary judgment were before the court. The court applied the standard that summary judgment is appropriate if there is no genuine dispute of material fact and the moving party is entitled to judgment as a matter of law.
COURT’S HOLDING AND CONCLUSION
The court concluded that the pollution exclusions unambiguously barred coverage for the property damage claims alleged in the underlying action because the damage arises from the discharge and migration of stormwater, which is a pollutant under Georgia law and the policy definitions. As a result, Auto-Owners had no duty to defend or indemnify the HOA for the claims in the underlying lawsuit
This ruling clarified the application of pollution exclusions in insurance policies to stormwater-related property damage claims under Georgia law, affirming that stormwater is considered a pollutant regardless of contamination or mode of discharge.
ZALMA OPINION
Insurance is a contract. It defines the terms where it will respond with indemnity and the terms where it will not respond. In Georgia stormwater – even when it is not contaminated – is still a pollutant and therefore the insurer neither owed defense nor indemnity to its insured.
(c) 2025 Barry Zalma & ClaimSchool, Inc.
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Insurance Expert May Not Testify to Speculative and Contains Unsupported Conclusions.
Posted on September 18, 2026 by Barry Zalma
See the full video at and at https://rumble.com/v7fmifw-expert-may-only-testify-to-what-experience-supports.html
In Michele A. Over, and The Estate Of Paul R. Over v. State Farm Mutual Automobile Insurance Company, and State Farm Fire And Casualty Company, Civil Action No. 23-cv-02243-PAB-STV, United States District Court, D. Colorado (September 14, 2026) Michele and Paul Over sued State Farm Fire and State Farm Auto over hail-damage and stolen-vehicle claims.
The operative dispute concerned State Farm Auto’s motion to exclude or limit opinions from plaintiffs’ insurance-industry expert, Aaron Castillo. Castillo.
Law
The proponent of expert testimony must establish by a preponderance of the evidence that an expert is qualified and that the opinions are helpful, sufficiently grounded, and reliably derived and applied. Experience-based opinions must explain how the...
150 Months in Prison for Tax Fraud
Post 4846
Posted on September 17, 2026 by Barry Zalma
See the full video at https://lnkd.in/g8rh3JBX and https://lnkd.in/gmkdy-9C, In United States Of America v. Thomas Addaquay, Nos. 25-10609, 25-10611, United States Court of Appeals, Eleventh Circuit (September 9, 2026) the Eleventh Circuit affirmed all challenged convictions, the 150-month aggregate sentence, and the challenged $4,123,474.55 restitution award.
FACTS
In United States Of America v. Thomas Addaquay, United States Of America v. Thomas Addaquay, Nos. 25-10609, 25-10611, United States Court of Appeals, Eleventh Circuit (September 9, 2026) the Eleventh Circuit affirmed all challenged convictions, the 150-month aggregate sentence, and the challenged $4,123,474.55 restitution award.
FACTS
Thomas Addaquay controlled United Consolidated Accounting and Business Services (UC), nominally a check-cashing business.
The government proved a three-stage tax-refund scheme that converted the resulting refund checks into usable funds through ...
Major Fraud Perpetrator Asserts Fifth Amendment Privilege to Avoid Prosecution
Post 5489
Posted on September 14, 2026 by Barry Zalma
Fraudster Refuses to Answer Questions About His Alleged Fraud
See the full video at https://lnkd.in/gvicAMDr and at https://lnkd.in/gvicAMDr
In Great American Insurance Co. v. Gemstone Property Management, LLC, et al., No. 23-cv-9100 (LJL), United States District Court, S.D. New York (September 8, 2026) Great American Insurance Company alleged that it was defrauded through a scheme in which Subin Associates, LLP recruited individuals to stage construction-site injuries, arranged unnecessary medical treatment and litigation funding, and pursued fraudulent personal-injury claims.
Luis Manuel Garcia Salcedo, resulted in a $6 million settlement. Non-party Jose Hernandez allegedly worked as an assistant manager at Subin, operated Hernandez Associates, and owned litigation-funding companies that shared office space with Subin and provided services to its clients.
After Great American ...
Sentence for Stealing from Veterans Administration Reasonably Considers State Insurance Fraud & Arson Convictions
Post 4863
Posted on October 14, 2026 by Barry Zalma
In United States Of America v. Anthony Curtis Brewer, No. 26-10745, United States Court of Appeals, Eleventh Circuit (October 8, 2026) Anthony Curtis Brewer became the fiduciary for an incapacitated recipient of Department of Veterans Affairs survivor benefits and agreed to use her funds solely for her care and support without commingling them with his own.
The VA determined that he misused $67,232.33 and removed him as fiduciary in 2022. Brewer pleaded guilty to theft of more than $1,000 in government property under 18 U.S.C. § 641. At sentencing, the district court attributed $53,567 in loss to him, producing an advisory Guidelines range of 15 to 21 months.
Citing the victim’s vulnerability, Brewer’s attempts to avoid responsibility, and his other fraudulent conduct — including state convictions for arson and insurance fraud — the court ...
Title Insurance Only Insures Real Property
Posted on October 13, 2026 by Barry Zalma
When a Seller Advised it Could Not Obtain Title to the Home Fraud Can’t be Proved
A Manufactured Home is Personal Property Until it Becomes Real Property
Post 4862
In Dale Johnson and Rose Johnson, Husband and Wife v. Stewart Title Guaranty Co., and Lennar Mortgage, LLC; Low Va Rates, LLC; Sandpoint Title Insurance, Inc.; Village Capital & Investment, LLC; and David Cassel, Engineer Agent; and Unknown Does 1-50, inclusively, No. 53126, Court of Appeals of Idaho (October 9, 2026) Dale and Rose Johnson purchased Idaho real property in 2012 with a manufactured home on it. Their purchase addendum acknowledged that the seller could not obtain title to the home, that evidence of title and an ALTA-7 endorsement might not be available, and that they accepted the home “as is.”
In 2020, after a HELOC application was denied, the Johnsons learned that the home had been wrecked and decertified in 2004 and that its 2006 conversion to real ...
Denial Of Mental Health Diversion And Probation Condition Were Affirmed
Posted on October 9, 2026 by Barry Zalma
Post 4860
In The People v. Nicholas Daniel Stiles, A173483, A173646, California Court of Appeals, First District, Second Division (September 29, 2026) Nicholas Daniel Stiles pleaded no contest to one count of insurance fraud arising from his purchase of automobile insurance after a June 2021 collision, and to grand theft arising from an April 2024 incident at a 7-Eleven.
In both cases, the trial court suspended imposition of sentence and placed him on two years’ probation. Before the pleas, Stiles sought mental health diversion in both matters and filed a written motion seeking substitute appointed counsel. The diversion applications were denied, and the court never held a hearing on the motion.
LAW
Penal Code section 1001.36 permits pretrial mental health diversion when a defendant is eligible and suitable and the proposed treatment will meet the defendant’s specialized needs; denial is reviewed for ...
