In May 2005, Bible Pork began the lengthy process of obtaining approval from the Illinois Department of Agriculture (Department) to begin constructing a new hog factory in Clay County. The construction required compliance with the Livestock Management Facilities Act. Eventually, the Department approved the plans, groundbreaking began in October 2005, and Bible Pork was operational in June 2006. Twenty-one plaintiffs filed an underlying lawsuit against Bible Pork during the construction project. They sought to have the facility deemed a nuisance due to anticipated “disagreeable noises, odors, dust particles, surface water contamination, and loss of property values which would interfere with their lives and render the facility a public and private nuisance.” Their complaint included “such other relief as deemed appropriate.” Bible Pork notified its insurer, Country Mutual, requesting defense and indemnity under two policies: (1) Agriplus Farm Liability Policy and a Farm Umbrella Liability Policy.

Country Mutual denied the claim under both policies because the complaint did not include an occurrence as defined, typically, sudden and accidental. In addition, there was no indication of damages only a declaratory judgment. Further, Country Mutual denied coverage, citing the pollution exclusion. Bible Pork continued to inform Country Mutual of developments in the underlying case and advised the carrier that plaintiffs were seeking both monetary damages and injunctive relief. As a result, Bible Pork asked Country Mutual to reconsider its denial of coverage and defense. Country Mutual again denied in August 2008, and in September 2008, did file for a declaratory judgment that it had no duty to defend.

On April 26, 2013, the trial court entered an order granting Bible Pork's motion for summary judgment, finding Country Mutual owed Bible Pork a duty to defend in the underlying lawsuit. The trial court made four specific findings with regard to why there was a duty to defend.

·         The underlying lawsuit was for damages under both policies seeking damages because the complaint included ““other relief deemed appropriate”.

·         There was an occurrence as defined and the “expected or intended injury” exclusion did not apply.

·         Allegations of contamination, depletion, and water contamination related to “physical injury to or destruction of physical property”.

·         The pollution exclusion was ambiguous and therefore, did not apply.

Country Mutual appealed the decision. The appellate court affirmed the judgment requiring Country Mutual to reimburse Bible Pork the $2,026.098.63expenses it incurred during the underlying plus accrued interest in the amount of $480,068.96.

Country Mut. Ins. Co. v. Bible Pork, Inc., Appellate Court of Illinois, Fifth District. November 20, 2015, 2015 IL App (5th) 140211 42 N.E.3d 958 397 Ill.Dec. 712