PITTSTON CO. ULTRAMAR AMERICA v. ALLIANZ INS.

Nos. 96-5166, 96-5167.

124 F.3d 508 (1997)

PITTSTON COMPANY ULTRAMAR AMERICA LIMITED, a Corporation of the State of Delaware; Ultramar Petroleum, Inc., a Corporation of the State of Delaware, Intervenor-Plaintiffs, v. ALLIANZ INSURANCE COMPANY, a Corporation of the State of California; Allstate Reinsurance Company, a Corporation of the State of Illinois; American Centennial Insurance Company, a Corporation of the State of Delaware; American Insurance Group, a Corporation of the State of California, a/k/a American Marine Insurance Group; American Marine Underwriters, Inc., a Corporation of the State of Wisconsin; Ancon Insurance Company, a Corporation; Citadel Assurance Company, a Corporation of Canada, a/k/a Citadel General; Employers Insurance Company of Wausau, a Corporation of the State of Wisconsin, a/k/a American Marine Underwriters; INSCO, a Corporation; Insurance Company of North America, a Corporation of the State of Pennsylvania; Insituto De Reasseguros Do Brasil; IRB, a British Corporation, a/k/a Price Forbes Limited; The Lumbermens Mutual Insurance Company, a Corporation of the State of Illinois; Mentor, a Corporation; Societa Italiana Assicurazioni Transporti, a Corporation of Canada, a/k/a S.I.A.T.; Sphere Drake Underwriters, a Corporation; The Charter Oak Fire Insurance Company, a Corporation of the State of Connecticut; The Hartford Insurance Company, a Corporation of the State of Connecticut; Travelers Indemnity Company, a Corporation of the State of Connecticut; United States Fire Insurance Company, a Corporation of the State of New York; Underwriters at Lloyd's of London, which include; Alliance Insurance Company, Ltd.; Andrew Weir Insurance Company, Ltd.; Bishopsgate Insurance Company, Ltd.; Drake Insurance Company, Ltd.; Edinburgh Assurance Company, Ltd.; English & American Insurance Company, Ltd.; Hansa Marine Insurance Company, Ltd.; Insurance Company of Ireland, Ltd.; Orion Insurance Company, Ltd.; Sphere Insurance Company, Ltd.; Threadneedle Insurance Company, Ltd., with said companies existing under the laws of the United States, the laws of some sovereign power, or as an underwriter at Lloyds of London; Does, 1-1000; Bellefonte Insurance Company, Ltd.; Gibbs and Companies; Minister Insurance Company No. 3; Nippon Fire & Marine Insurance Company (UK), Ltd.; Ocean Marine Insurance Company, Ltd.; Skandia (UK) Insurance Company, Ltd., per Orion Insurance Company, Plc. Group Et.; Switzerland American Insurance Company, Ltd.; Yasuda Fire & Marine Company, (UK) Ltd.; Andrew Weir Insurance Company, Ltd. SBA/C; Andrew Weir Insurance Company, Ltd. Group; Andrew Weir Insurance Company, Ltd. `W'; Andrew Weir Insurance Company, Ltd. NZSB; Chiyoda Fire & Marine Insurance Company; Rochdale Insurance Company; Unigard Mutual Insurance Company; Unione Italiana; United Americas; Andrew Weir Insurance Company; Assicurzaioni Generali S.P.A.; British Law Insurance Company; British Reserve Insurance Company, Ltd. No. LA/C; Commercial Union Assurance Company, Ltd.; Excess Insurance Company, Ltd.; La Reunion Francaise S.A. D'Assurances; Minister Insurance Company, Ltd. No. 2A/C; National Insurance Company Of New Zealand, Ltd.; Nippon Fire & Marine Insurance Company, Ltd.; Nippon Fire & Marine Insurance Company, Ltd. TLA/C; English & American Insurance Company, Ltd.; Northern Assurance Company, Ltd. Group; Phoenix Assurance Company, Ltd.; Polaris-Norske SJO Insurance Company, Ltd. "NT"A/C; Provincial Insurance Public Limited Company; Road Transport Insurance Company, Ltd.; Road Transport & General Insurance Company, Ltd.; Scottish Lion Insurance Company, Ltd.; Protective Insurance Company Pittston Company; Allianz Insurance Company; Allstate Reinsurance Company; American Centennial Insurance Company; American Insurance Group; American Marine Underwriters, Inc.; Ancon Insurance Company; Citadel Assurance Company; Employers Insurance Company of Wausau; INSCO; Insurance Company of North America; Insituto de Reasseguros do Brasil; IRB; The Lumbermens Mutual Insurance Company; Mentor; Societa Italiana Assicurazioni Transporti; Sphere Drake Underwriters; The Charter Oak Fire Insurance Company; The Hartford Insurance Company; Travelers Insurance Company; United States Fire Insurance Company; Underwriters at Lloyd's of London; Alliance Insurance Company, Ltd.; Andrew Weir Insurance Company, Ltd.; Bishopsgate Insurance Company, Ltd.; Drake Insurance Company, Ltd.; Edinburgh Assurance Company, Ltd.; English & American Insurance Company, Ltd.; Hansa Marine Insurance Company, Ltd.; Insurance Company of Ireland, Ltd.; Orion Insurance Company, Ltd.; Sphere Insurance Company, Ltd.; Threadneedle Insurance Company, Ltd.; Does; Bellefonte Insurance Company, Ltd., Intervenor-Defendants. Ultramar America Limited, and Ultramar Petroleum, Inc., (collectively "Ultramar"), Appellants No. 96-5166. The Pittston Company ("Pittston"), Appellant No. 96-5167.

United States Court of Appeals, Third Circuit.

Decided August 27, 1997.


Attorney(s) appearing for the Case

John E. Heintz (argued), Christopher H. Marraro, Steven N. Gersten, Howrey & Simon, Washington, DC, John M. Angello, Carella, Byrne, Bain, Gilfillan, Cecchi, Stewart & Olstein, Roseland, NJ, for Appellants in No. 96-5166, Ultramar America Limited and Ultramar Petroleum, Inc.

Robert N. Sayler (argued), William F. Greaney, Robert A. Long, Jr., Covington & Burling, Washington, DC, Timothy A. Vanderver, Jr., David J. Farber, Patton Boggs, L.L.P., Washington, DC, for Appellant in No. 96-5167, The Pittston Company.

William B. McGuire, John J. Henschel, Tompkins, McGuire & Wachenfeld, Newark, NJ, Donald T. Rave, Jr., George R. Daly, Stacey Tranchina, Bigham, Englar, Jones & Houston, New York City, for Allianz Insurance Company; Ancon Insurance Company; The Hartford Insurance Company; Chiyoda Fire & Marine Insurance Company; Rochdale Insurance Company; Unigard Mutual Insurance Company; Unione Italiana; United Americas.

Wm. Gerald McElroy, Jr. (argued), Zelle & Larson, Waltham, MA, for American Marine Underwriters, Inc.; Employers Insurance Company of Wausau.

Martin R. Baach, Bruce R. Grace (argued), Nussbaum & Wald, Washington, DC, for INSCO; Sphere Drake Underwriters; Nippon Fire & Marine Insurance Company (U.K.) Limited; Skandia (UK) Insurance Company, Ltd., per Orion Insurance Company, PLC. Group; Switzerland American Insurance Company; British Reserve Insurance Company, Ltd. No. LA/C; National Insurance Company of New Zealand, Ltd.; Phoenix Assurance Company, Ltd.; Polaris-Norske SJO Insurance Company, Ltd.; Provincial Insurance Public Limited Company; Road Transport & General Insurance Company, Ltd.; Nippon Fire & Marine Insurance Company, Ltd.; Nippon Fire & Marine Insurance Company, Ltd. TLA/C.

Paul R. Koepff (argued), Paul M. Alfieri, O'Melveny & Myers, New York City, for Insurance Company of North America.

James A. Scarpone, Hellring, Lindeman, Goldstein & Siegal, Newark, NJ, Neal M. Glazer (argued), D'Amato & Lynch, New York City, Martin R. Baach, Bruce R. Grace, Nussbaum & Wald, Washington, DC, for Underwriters at Lloyd's of London; Bishopsgate Insurance Company; Insurance Company of Ireland; Threadneedle Insurance Company; Minister Insurance Company No. 3; Ocean Marine Insurance Company; Assicurzaioni Generali S.P.A.; British Law Insurance Company; Commercial Union Assurance Company, Ltd.; Excess Insurance Company, Ltd.; La Reunion Francaise S.A. D'Assurances; Northern Assurance Company, Ltd. Group; Scottish Lion Insurance Company, Ltd.; Andrew Weir Insurance Company, Ltd.; Minister Insurance Company, Ltd. No. 2A/C; Road Transport Insurance Company.

Joseph R. McDonough, Graham, Curtin & Sheridan, Morristown, NJ, for Yasuda Fire & Marine Company, (UK) Ltd.

Edward G. Madden, Jr., Mattson & Madden, Newark, NJ, for Protective Insurance Company.

Joseph L. Ruby, Wiley, Rein & Fielding, Washington, DC, for Travelers Indemnity Company.


OPINION OF THE COURT

LEWIS, Circuit Judge.

These related appeals involve a multi-party insurance dispute arising from a polluted oil transfer terminal, "Tankport," which sits on the western shore of upper New York Harbor in Jersey City, New Jersey. Appellants Ultramar America Limited and Ultramar Petroleum, Inc. (collectively "Ultramar") purchased Tankport from Appellant The Pittston Company ("Pittston"). As part of the purchase agreement, Pittston agreed...

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