Auto-Owners Insurance Company is seeking to avoid defending Barrow Investment Group of Georgia, LLC, in a lawsuit over stormwater runoff at the Stone Haven development in Winder, Georgia. Filed on August 5, 2025, in the U.S. District Court for the Northern District of Georgia, the insurer’s complaint cites policy exclusions and late notice as grounds for denying coverage. The lawsuit stems from claims by neighbors Jeff Lee Martin and Sara Brooke Johnson, who allege that sediment-heavy runoff from Barrow’s 70-acre construction site, starting in 2022, damaged their properties and Sarah’s Creek during rainstorms.
Auto-Owners argues that Barrow failed to notify them of the runoff events or claims until August 2024, despite the first incident in August 2022, violating the policy’s requirement for prompt notice. Additionally, the insurer points to a pollution exclusion, defining sediment, silt, and soil—key elements in the runoff—as pollutants, barring coverage. They also contend the damage wasn’t an “occurrence” under the policy, as Barrow’s deliberate actions (clearing, grading, excavating) caused foreseeable runoff, triggering an “expected or intended injury” exclusion. The policy also excludes injunctive relief and attorneys’ fees, covering only property loss damages, and the known loss doctrine applies since Barrow knew of the damage before renewing the policy in August 2023.
This case highlights strict policy language and reporting requirements, with potential implications for how insurers and developers handle environmental liability claims. The allegations remain unproven, and the court has yet to rule.