Arkansas “occurrence”

In Advanced Environmental Recycling Technologies Inc. v. American International Specialty Lines Ins. Co., No. 09-11075 (5^th Cir. Oct. 22, 2010), the insured building material manufacturer was sued by purchasers of the insured’s products seeking damages for damage limited to the insured’s products.   The insured’s liability insurer filed suit seeking judicial declarations of no duty to defend or indemnity.  The federal district trial court granted the insurer’s motion for summary judgment.  On appeal, the Fifth Circuit affirmed.  Applying Arkansas law, the court held that, under the Arkansas Supreme Court’s 2007 decision in Essex v. Holder, absent allegations of damage to property other than the insured’s product, the underlying complaint did not allege an “occurrence.”