OWENS-ILLINOIS, INC., A CORPORATION DULY ORGANIZED UNDER THE LAWS OF THE STATE OF OHIO, PLAINTIFF-RESPONDENT,
v.
UNITED INSURANCE CO., A CORPORATION DULY ORGANIZED UNDER THE LAWS OF THE BRITISH WEST INDIES; OWENS INSURANCE LIMITED, A CORPORATION DULY ORGANIZED UNDER THE LAWS OF BERMUDA; AND GENERAL REINSURANCE CORPORATION, A CORPORATION DULY ORGANIZED UNDER THE LAWS OF DELAWARE, DEFENDANTS-APPELLANTS, AND AMERICAN RISK MANAGEMENT, INC., A CORPORATION DULY ORGANIZED UNDER THE LAWS OF BERMUDA; INTERNATIONAL RISK MANAGEMENT LTD., A CORPORATION DULY ORGANIZED UNDER THE LAWS OF BERMUDA; AND ARMRISK, INC., A CORPORATION DULY ORGANIZED UNDER THE LAWS OF BERMUDA, DEFENDANTS, AND ALLSTATE INSURANCE COMPANY AND AMERICAN RE-INSURANCE COMPANY, INTERVENORS-APPELLANTS, AND CIGNA REINSURANCE COMPANY (FORMERLY INA REINSURANCE COMPANY), INTERVENOR.
The Supreme Court of New Jersey.https://leagle.com/images/logo.png
Argued September 26, 1994.
Decided December 22, 1994.
Attorney(s) appearing for the Case
Stephen D. Cuyler argued the cause for appellant United Insurance Company (Cuyler, Burk & Matthews, attorneys; Allen E. Molnar, of counsel; Mr. Molnar and Gregg S. Sodini, on the briefs).
David R. Gross argued the cause for appellant General Reinsurance Corporation (Budd Larner Gross Rosenbaum Greenberg & Sade, attorneys; Mr. Gross, Joseph J. Schiavone, Donald P. Jacobs, Vincent J. Proto, and Elda Beylerian, on the briefs).
David J. D'Aloia argued the cause for intervenor-appellant Allstate Insurance Company (Saiber Schlesinger Satz & Goldstein, attorneys; Mr. D'Aloia, Sean R. Kelly, and Michael J. Geraghty, on the briefs).
William J. Brennan, III, submitted a brief on behalf of intervenor-appellant American Re-Insurance Company (Smith, Stratton, Wise, Heher & Brennan, attorneys; Mr. Brennan and Wendy L. Mager, on the briefs).
Bertram E. Busch submitted briefs on behalf of appellant Owens Insurance Limited (Busch and Busch, attorneys; Mr. Busch and Kenneth A. Levine, on the briefs).
Andrew T. Berry argued the cause for respondent Owens-Illinois, Inc. (McCarter & English, attorneys; Mr. Berry, Gita F. Rothschild, and John L. McGoldrick, of counsel; Mr. Berry, Ms. Rothschild, Anthony Bartell, Teresa L. Moore, Rosanne C. Baxter, and Anthony J. Del Piano, on the briefs).
Gerald A. Hughes submitted a brief on behalf of amicus curiae Insurance Environmental Litigation Association (Hughes & Hendrix, attorneys).
Paul E. Breene and John A. MacDonald submitted a brief on behalf of amici curiae New Jersey Public Risk Managers Association, Township of West Milford, Air Products and Chemicals, Inc., A.P. Green Industries, Inc., Allied Signal Inc., American Telephone and Telegraph Company, Inc., Armstrong World Industries, Inc., Asarco Incorporated, Asbestos Claims Management Corporation, The BOC Group, Inc., C.E. Thurston & Sons, Inc., Columbia Gas Transmission Corporation, Combustion Engineering, Inc., Dana Corporation, Dow Corning Corporation, Ferodo America, Inc., Flexitallic, Inc., Ford Motor Company, HM Holdings, Inc., ICI Americas Inc., International Business Machines Corporation, J.T. Baker, Inc., Lac D'Amiante Du Quebec, LTEE, Maremont Corporation, National Service Industries, Inc., Pfizer Inc., Public Service Electric & Gas Company, Rohm & Haas Company, Schering-Plough Corporation, Shook & Fletcher Insulation Company, T & N PLC, Union Carbide Chemicals and Plastics Company, Inc., United States Gypsum Company, United States Mineral Products Company, Warner-Lambert Company, Westinghouse Electric Corporation, Wheeling Pittsburgh Steel Corporation and Witco Corporation (Anderson Kill Olick & Oshinsky, Lowenstein, Sandler, Kohl, Fisher & Boylan, attorneys for Westinghouse Electric Corporation; Callahan, Delany & O'Brien, attorneys for Combustion Engineering, Inc.; Hannoch Weisman, attorneys for HM Holdings, Inc.; Carella, Byrne, Bain, Gilfillan, Cecchi, Stewart & Olstein, attorneys for Witco Corporation, and Rudolph J. Sanson, attorney for United States Mineral Products Company).
The Supreme Court of New Jersey.
The opinion of the Court was delivered by O'HERN, J.
This appeal involves two aspects of a dispute between a manufacturer of an asbestos product and its insurers concerning the coverage afforded to the manufacturer under its liability insurance policies. First is the "trigger of coverage" issue, a shorthand expression for identifying the events that must occur during a policy period to require coverage for losses sustained by the policyholder. Second is the "allocation...
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