An insurance company is seeking judgement from a federal court that it is not obligated to pay damages sought against a homeowner’s association that it covers due to a “pollution exclusion.”

The controversy stems from an incident that took place at a communi ty swimming pool maintained by the Harper’s Mill Homeowner’s Association located in Richmond, Virginia, in June 2022.

At that time, the homeowner’s association employed SwimMetro Management to service and maintain their pool. On June 15, an employee of SwimMetro was servicing the swimming pool and accidentally discharged a large amount of chlorine and muriatic acid into the pool.

There were patrons in the pool at the time, and about 15 have claimed physical and respiratory illness from contact with the chemicals. Several of these people have filed negligence lawsuits against the Harper’s Mill Homeowners Association, which has a commercial general liability policy with Philadelphia Indemnity Insurance Company.

According to the policy’s terms, the insurance company agrees to pay for occurrences of bodily injury taking place on the homeowners association grounds.

In this case, however, Philadelphia Insurance Company is arguing that it is not obligated to pay for damages because the insurance policy contains a pollution exclusion.

Because the incident that took place on June 15 involved “bodily injury resulting from discharge or dispersal of pollutants,” court papers state, “there is no coverage for the claims made.”

Philadelphia Insurance Company is asking the court to declare that it has no duty to defend or indemnify Harper’s Mill Homeowners Association in the underlying lawsuits.