National Fire Insurance Company of Hartford v. Martinelli, et al., No. 07-CV-01056-AWI-GSA , 2008 U.S. Dist. LEXIS 52911 (E.D. Cal. Jul. 11, 2008)

(levee of process pond of olive-growing operation failed and flooded neighboring property with salt-water/brine wastewater which inundated 40 acres of defendant’s olive orchards and another defendant’s 40-acres of grapes, killing the olive trees and grape vines; levee failure was due to insured’s negligent failure to properly inspect and maintain process pond; plaintiff denied coverage and defendant obtained default judgment of over $70 million; insured then filed bankruptcy and plaintiff sought declaratory judgment that policies provided no coverage via a “pollution exclusion” clause; pollution exclusion clause held applicable – widespread flooding of substantial amount of saltwater/brine from commercial process pond onto adjacent agricultural land commonly thought of as pollution and environmental pollution).