OWENS-ILLINOIS, INC. v. UNITED INS. CO.


264 N.J. Super. 460 (1993)

625 A.2d 1

OWENS-ILLINOIS, INC., PLAINTIFF-RESPONDENT AND CROSS-APPELLANT, v. UNITED INSURANCE CO., OWENS INSURANCE LIMITED, AMERICAN RISK MANAGEMENT, INC., INTERNATIONAL RISK MANAGEMENT LTD., ARMRISK, INC., GENERAL REINSURANCE CORPORATION, ALLSTATE INS. CO. AND CIGNA REINSURANCE CO., DEFENDANTS-APPELLANTS AND CROSS-RESPONDENTS, AND AMERICAN REINSURANCE COMPANY, INTERVENOR.

Superior Court of New Jersey, Appellate Division.

Decided April 29, 1993.


Attorney(s) appearing for the Case

Bertram E. Busch argued the cause for appellant and cross-respondent Owens Insurance Ltd. (Busch and Busch, attorneys; Mr. Busch, of counsel and on the brief).

Thomas F. Quinn argued the cause for appellants and cross-respondents American Risk Management, Inc., International Risk Management, Ltd. and ARMRISK, Inc. (Wilson, Elser, Moskowitz, Edelman & Dicker, attorneys; James Crawford Orr, of counsel; Mr. Quinn and Matthew S. Slowinski, on the brief).

David R. Gross argued the cause for appellant and cross-respondent General Reinsurance Corporation (Budd Larner Gross Rosenbaum Greenberg & Sade, attorneys; Cuyler, Burk & Matthews, of counsel; Mr. Gross, Joseph J. Schiavone and Donald P. Jacobs, on the brief).

Thomas A. Allen argued the cause for appellant and cross-respondent CIGNA Reinsurance Company (White and Williams, attorneys; Miller, Singer, Raives & Brandes, of counsel; Mr. Allen, Regina B. Mapes, Lawrence I. Brandes, Clifford H. Schoenberg and Nancy K. Eisner, on the brief).

William J. Brennan, III argued the cause for intervenor American Reinsurance Company (Smith, Stratton, Wise, Heher & Brennan and Pope & John, Ltd., attorneys; Mr. Brennan, Wendy L. Mager, Robert J. Bates, Jr., Patrick J. Foley and Caesar A. Tabet, on the brief).

Andrew T. Berry argued the cause for respondent and cross-appellant Owens-Illinois, Inc. (McCarter & English, attorneys; Clifford & Warnke, of counsel; Mr. Berry, Gita F. Rothschild, Jerry P. Sattin, Anthony Bartell, Teresa L. Moore, Stephen Marinko, Sherilyn Pastor, Rosanne C. Kemmet and Arnold L. Natali, Jr., on the brief).

No one appeared on behalf of Amicus Curiae Insurance Environmental Litigation Association (Hughes & Hendrix, attorneys; Wiley, Rein & Fielding, of counsel; Gerald A. Hughes, Thomas W. Brunner, James M. Johnstone and Stephen P. Keim, on the brief).

David D'Aloia argued the cause for appellant and cross-respondent Allstate Insurance Company (Saiber Schlesinger Satz & Goldstein, attorneys; Mr. D'Aloia, Sean R. Kelly and Gregg S. Sodini, on the brief).

Allen E. Molnar argued the cause for appellant and cross-respondent United Insurance Company (Cuyler, Burk & Matthews, attorneys; appellant relied on the brief of Allstate Insurance Company).

Before Judges MICHELS, BAIME and WALLACE.


The opinion of the court was delivered by BAIME, J.A.D.

These appeals and cross-appeals present difficult questions concerning the construction and application of a series of primary and excess insurance policies issued by United Insurance Company (United) and Owens Insurance, Ltd. (OIL) to their insured Owens-Illinois, Inc. (O-I). OIL passed off 100% of its umbrella liability to various reinsurers who have also appealed from the Chancery Division's judgment.

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