Insurers Do Not Have To Cover Nitrous Oxide Lawsuits Linked to Illegal Use, Judge Rules

Decision comes as nitrous oxide lawsuits continue to be filed by consumers nationwide who allegedly suffered addiction and severe injuries.

A federal judge has ruled that two insurance companies have no duty to defend businesses facing lawsuits over the sale of nitrous oxide products, which have been marketed in recent years for the illegal use as a recreational inhalant.

Distributors and manufacturers of nitrous oxide products face a growing number of criminal and civil cases for selling large quantities that are often used for illegal inhalation, which has been linked to reports of severe nerve damage, paralysis and deaths.

As these nitrous oxide lawsuits continue to increase, several insurers have sought to avoid covering the potentially significant liability costs the retailers and manufacturers face for their role in devastating injuries suffered by consumers who inhaled the gas.

Nitrous Oxide Inhalation Injuries

Nitrous oxide is traditionally used as an anesthetic in medical situations or as a propellant for food preparation. However, in recent years canisters of nitrous oxide, often referred to as “laughing gas,” have been increasingly marketed directly to consumers for recreational use through online retailers on Amazon.com, local smoke and vape shops, as well as other major retailers.

The use of laughing gas is known to cause a feeling of euphoria, and manufacturers have begun adding various flavors to the canisters, which are often sold with accessories designed to help with inhalation. Critics point out that legitimate culinary uses do not involve flavoring the gas itself.

Amid these concerns, nitrous oxide lawsuits began to emerge in large numbers following a U.S. Food and Drug Administration warning issued over a nationwide surge in injuries linked to inhalation. Plaintiffs allege the products have caused severe harm, including brain damage, paralysis, psychiatric complications, addiction and, in some cases, death.

Insurers Not Liable for Illegal Nitrous Oxide Injuries

In September 2024, a woman named Jenna Combel filed a lawsuit against more than 20 nitrous oxide manufacturers and distributors. Combel recreationally used the gas from 2019 until 2023, suffering paralysis and nerve damage.

Following the filing, two insurance companies, United Specialty Insurance Company and Century Surety Company, brought a motion for summary judgment, asking the court to declare that they do not have to cover nitrous oxide sellers because they face claims for illegal activity. They note that such crimes are not included in their coverage.

On March 19, U.S. District Judge Sarah S. Vance, of the Eastern District of Louisiana, issued an order (PDF) granting the motion for summary judgment. Judge Vance indicated that, normally, the Court would have to conduct an extensive analysis of Combel’s complaint.

“Here, however, the Court finds that Century and United easily meet their burden of proving that coverage under the policies is foreclosed by a policy exclusion. This single issue is dispositive of all aspects of Century and United’s duty to provide a defense.”

– U.S. District Judge Sarah S. Vance

Century and United are not alone in seeking to distance themselves from the potential liability caused by businesses selling nitrous oxide products.

In February, a similar claim was filed by the Gemini Insurance Company in the Northern District of Georgia, seeking to void or rescind its insurance policy with Galaxy Gas LLC, which is one of the leading distributors of nitrous oxide, and the subject of numerous nitrous oxide lawsuits.

Galaxy Gas also came under scrutiny by investigators in Louisiana in March 2024 due to its nitrous oxide sales. Gemini indicates the company misled them about the nature of its business.

Nitrous Oxide Lawsuits

Galaxy Gas is just one of several nitrous oxide canister brands, including Baking Bad, Cosmic Gas, HOTWHIP, InfusionMax, MassGass, Miami Magic and Whip-It!, facing civil, and sometimes criminal, claims that they illegally sold nitrous oxide for recreational use.

Plaintiffs claim that these and other manufacturers and distributors have failed to provide adequate warnings and use deceptive marketing tactics to promote large canisters of nitrous oxide, designed for inhalation, as safe or harmless. Former users and family members seek to hold them accountable for injuries caused by placing profits over consumer safety.

Without insurance coverage, some defendants may face increasing pressure to settle such cases before the legal costs get out of hand.

Nitrous oxide attorneys are currently offering free consultations to individuals and families who may be eligible for compensation through a Galaxy Gas lawsuit, or lawsuit against another nitrous oxide canister manufacturer.

To stay up to date on this litigation, sign up for nitrous oxide lawsuit updates to be delivered directly to your inbox.