Counterclaims Against Excess Insurer In Explosion Coverage Suit Must Be Dismissed

Mealey's (May 25, 2023, 1:56 PM EDT) -- TRENTON, N.J. — An insured’s counterclaims for breach of contract and bad faith alleged against its excess insurer, which relied on its policy’s total pollution exclusion to deny coverage for underlying suits arising out of an explosion set off by the use of the insured’s magnesium powder, must be dismissed for failure to allege sufficient facts in support of the claims, a New Jersey federal judge said in granting the insurer’s motion to dismiss....