Act of War Exclusion Narrowly Applied but Broad Enough to Exclude Coverage Re: September 11 Attacks

Cedar & Washington Associates, LLC v. The Port Authority of New York and New Jersey, et al. (2nd Cir.; May 2, 2014)

In an action seeking coverage for cleanup of toxic dust from the September 11 terrorist attacks, the court found that the insurers could properly rely on the act of war defense under CERCLA to disclaim coverage for damages caused by toxic releases caused by an “act of war.” The decision, however, appears to narrow application of the defense of such claims.