MacKinnon

In this case, we consider the meaning of an exclusionary clause in a comprehensive general liability (CGL) insurance policy that excludes injuries caused by the “discharge, dispersal, release or escape of pollutants.” Specifically, we are asked to determine whether that clause, a standard pollution exclusion clause, applies to exclude injury to a tenant resulting from a landlord’s allegedly negligent use of pesticides on his property. We conclude that in order for an exclusionary clause to effectively exclude coverage, it “ ‘must be conspicuous, plain and clear’ ” (Gray v. Zurich Insurance Co. (1966) 65 Cal.2d 263, 271 [ 54 Cal.Rptr. 104 , 419 P.2d 168 ]), and that the pollution exclusion in question does not plainly and clearly exclude ordinary acts of negligence involving toxic chemicals such as pesticides. Accordingly, we reverse the contrary judgment of the Court of Appeal.

I. STATEMENT OF FACTS

The following facts are undisputed. Truck Insurance Exchange (Truck Insurance) issued a CGL insurance policy to John R. MacKinnon, for the period of April 1996 to April 1997. That policy obligated the insurer to pay “all sums for which [the insured] become[s] legally…