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STATE v. UNDERWRITERS AT LLOYDS LONDON

No. S-1909.

755 P.2d 396 (1988)

STATE of Alaska, United Liability Insurance Company, Midland Insurance Company and Alaska Pacific Assurance Company, Appellants, v. UNDERWRITERS AT LLOYDS, LONDON, who are members of Syndicate Nos. 48, 140, 800, 402, 942, 53, 960, 97, 595, 950, 295, 256, 312 of the list of underwriting members of Lloyds numbered 1975/8; the British Aviation Insurance Co., Ltd.; Cornhill Insurance Co., Ltd.; Sovereign Marine & General Insurance Co., Ltd.; Drake Insurance Co., Ltd.; Aviation & General Ins. Co., Ltd.; Phoenix Assurance Co., Ltd.; Orion Insurance Co., Ltd.; Scottish Lion Ins. Co., Ltd.; Commercial Union Assurance Co., Ltd.; Excess Insurance Co., Ltd.; Aviation and General Insurance Company Limited; Highlands Insurance Company Limited; London Edinburgh General Insurance Company Limited; American Home Assurance Company and those underwriters at Lloyds and insurance companies subscribing to the insurance policy(s) excess to policy No. 576/AK 90367, Appellees.

Supreme Court of Alaska.

Rehearing Denied June 23, 1988.

Attorney(s) appearing for the Case

Lloyd B. Ericsson, Timothy E. Miller, and Robert J. Ericsson, Martin, Bischoff, Templeton, Biggs & Ericsson, Anchorage, for appellants.

Katherine B. Posner, Condon & Forsyth, New York City, and Rand Dawson, Anchorage, for appellees.

Before MATTHEWS, C.J., and RABINOWITZ, BURKE, and COMPTON JJ.

OPINION

MATTHEWS, Chief Justice.

This appeal raises the question whether an airline's premises-operations insurance provides coverage for a taxiway accident.

I. INTRODUCTION

In 1975, a Boeing 747 aircraft owned by Japan Airlines (JAL) was damaged when it slid off an icy taxiway at Anchorage International Airport. The cost of repairing the aircraft was nearly $20 million. JAL and its property insurers sued the State of Alaska, the owner...

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