A.Y. McDONALD INDUSTRIES v. INA

No. 89-1722.

475 N.W.2d 607 (1991)

A.Y. McDONALD INDUSTRIES, INC., Plaintiff, v. INSURANCE COMPANY of NORTH AMERICA, The American Insurance Company, Hartford Accident and Indemnity Company, The Aetna Casualty and Surety Company, American Employers Insurance Company, Employers Reinsurance Corporation, Allstate Insurance Company, Employers Insurance Company of Wausau, National Surety Corporation, Puritan Insurance Company, Old Republic Insurance Company, Twin City Fire Insurance Company, The Home Insurance Company, and The Cincinnati Insurance Company, Defendants.

Supreme Court of Iowa.

September 18, 1991.


Attorney(s) appearing for the Case

William C. Fuerste, Stephen J. Juergens, and Gregg L. Owens of Fuerste, Carew, Coyle, Juergens & Sudmeier, Dubuque, for plaintiff A.Y. McDonald Industries, Inc.

Paul R. Koepff, Kathleen A. Gallagher, and Michael P. Murphy of Mudge, Rose, Guthrie, Alexander & Ferdon, New York, New York, and Robert M. Jilek of Simmons, Perrine, Albright & Ellwood, Cedar Rapids, for defendant Ins. Co. of North America.

Daniel A. Bartoldus, Lawrence A. Levy, and Alyse Walker of Rivkin, Radler, Bayh, Hart & Kremer, Uniondale, N.Y., and Greg A. Egbers of Betty, Neuman & McMahon, Davenport, for defendants The American Ins. Co. and Nat. Sur. Corp.

Paul L. Gingras and Richard M. Hagstrom of Zelle & Larson, Minneapolis, Minnesota, and Richard P. Moore of Moyer & Bergman, Cedar Rapids, for defendant Employers Ins. of Wausau.

Daniel G. Litchfield and Gail D. Zwemke of Burditt, Bowles & Radzius, Chicago, Ill., and John M. Wharton of Peddicord & Wharton, Des Moines, and Terry J. Abernathy of Pickens, Barnes & Abernathy, Cedar Rapids, and William C. Davidson and Carole J. Anderson of Lane & Waterman, Davenport, for defendants The Aetna Cas. and Sur. Co., The Cincinnati Ins. Co., Employers Reinsurance Corp. and American Employers Ins. Co.

Susan Allender, Gen. Counsel, and Diane Munns, Deputy Gen. Counsel, for amicus curiae Iowa Utilities Bd.

Roger L. Lande, John S. Gosma, and David J. Meloy of Stanley, Rehling, Lande & Van Der Kamp, Davenport, and Peter C. Condron, Michel Y. Horton, and Paul A. Zevnik of Kaye, Scholer, Fierman, Hays & Handler, Washington, D.C., for amici curiae City of Clinton, Iowa, Iowa Southern Utilities Co., Winnebago Industries, Inc., Quantum Chemical Corp., Getty Chemical Co., Hon Industries, Inc., and Grain Processing Corp.

Mark E. Schantz of Dickinson, Throckmorton, Parker, Mannheimer & Raife, Des Moines, and Thomas W. Brunner, Marilyn E. Kerst, and Frederick S. Ansell of Wiley, Rein & Fielding, Washington, D.C., for amici curiae Employers Mut. Cas. Co., Hawkeye-Security Ins. Co., United Sec. Ins. Co., and Ins. Environmental Litigation Ass'n.

Douglas Gross of Brown, Winick, Graves, Donnelly, Baskerville & Schoenebaum, Des Moines, for amici curiae Iowa Power, Inc., Iowa Elec. Light & Power, Interstate Power Co., Iowa-Illinois Gas & Elec. Co., United Cities Gas Co., and Peoples Natural Gas Co.

Mark A. Critelli of Comito & Capps, West Des Moines, and John B. Haarlow, Richard E. Mueller, and Diane I. Jennings of Lord, Bissell & Brook, Chicago, Ill., for amicus curiae John Richard Ludbrook Youell (a Lloyd's of London underwriter).

Thomas J. Miller, Atty. Gen., Elizabeth M. Osenbaugh, Deputy Atty. Gen., and John P. Sarcone, Asst. Atty. Gen., for amicus curiae State of Iowa.

Considered en banc.


LAVORATO, Justice.

This case presents certified questions from the federal district court for the northern district of Iowa. See Iowa Code § 684A (1991); Iowa R.App.P. 451-61. The underlying action arises out of environmental contamination claims asserted by a federal governmental agency against the plaintiff A.Y. McDonald Industries, Inc. (A.Y. McDonald). A.Y. McDonald contends that because of these claims it was forced to incur, and will incur in the...

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