W.R. GRACE & CO. v. CONTINENTAL CAS. CO.

Nos. 88-2902, 88-6164.

896 F.2d 865 (1990)

W.R. GRACE & COMPANY, Plaintiff-Appellee, v. CONTINENTAL CASUALTY COMPANY, Gerling Konzern Allegmeine Versicherungs-Aktiengesellschaft, Granite State Insurance Co., Guarantee Insurance Co., Hartford Accident and Indemnity Co., et al., Defendants-Appellants.

United States Court of Appeals, Fifth Circuit.

Opinion on Denial of Rehearing and Rehearing April 9, 1990.


Attorney(s) appearing for the Case

Kerry L. Neves, Mills, Shirley, Eckel & Basset, Galveston, Tex., Stuart C. Levene, New York City, for Continental Cas. Co.

Gordon R. Pate, Pate & Dodson, Beaumont, Tex., William J. Bowman, L. Anthony Sutin, Hogan & Hartson, Washington, D.C., for Hartford Acc. & Indem. Co.

W. James Kronzer, Houston, Tex., R. Jeff Carlisle, Wendell Radford, Hubert Oxford, III, Benckenstein, Oxford, Radford & Johnson, Beaumont, Tex., for Granite State Ins. Co., et al.

William J. Joseph, Jr., Houston, Tex., Arthur J. Liederman, New York City, for Gerling Konzern Allegmeine Versicherungs-Aktiengesellschaft.

Patrick Greek, Richard H. Edelman, Clayton O. Lilinenstern, Frank B. Davis, Andrews & Kurth, Houston, Tex., Shepard M. Remis, James J. Dillon, Goodwin, Procter & Hoar, Boston, Mass., Stephen C. Tupper, Murray Sacks, Randy Paar, Jerold Oshinsky, Anderson, Baker, Kill & Olick, New York City, Charles Dewey Cole, Jr., Meyer, Suozzi, English & Klein, Mineola, N.Y., Walter Crawford, Wells, Peyton, Beard, Greenberg, Hunt & Crawford, Beaumont, Tex., for W.R. Grace & Co.

L.S. Carsey, Patricia J. Kerrigan, Houston, Tex., for other appellants.

Marybeth Jacobsen, Nancy J. Gleason, Philip J. McGuire, Karen J. Golden, Chicago, Ill., for Allstate Ins. Co.

Thomas W. Brunner, Laura A. Foggan, Frank Winston, Jr., Wiley, Rein & Fielding, Washington, D.C., for amicus curiae IELA.

Stewart Dalzell, Drinker, Biddle & Reath, Philadelphia, Pa., for amicus A M Motorists Ins. Co.

I. Franklin Hunsaker, Stephen F. English, Roger Westendorf, Bullivant, Houser, Bailey, Pendergrass & Hoffman, Portland, Or., Don Martinson, Fanning, Harper & Martinson, Dallas, Tex., for Guarantee Ins. Co.

Mary Ann D Amato, Thomas J. Quinn, New York City, Stephen Pate, L.S. Carsey, Patricia J. Kerrigan, Fulbright & Jaworski, Houston, Tex., Keith A. Jones, Washington, D.C., for Certain Underwriters at Lloyd's, London Market Ins. Co., Guarantee Ins. Co., and Bermuda Fire.

Before BROWN, REAVLEY, and HIGGINBOTHAM, Circuit Judges.


Opinion on Denial of Rehearing and Rehearing En Banc April 9, 1990.

PATRICK E. HIGGINBOTHAM, Circuit Judge:

I

In April 1981, a number of independent Texas school districts sued National Gypsum Company, complaining of asbestos installed in approximately 600 school buildings located throughout the state of Texas. The School Districts sought recovery of $175 million and punitive damages of three times that amount for the costs of containing or replacing...

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