POTOMAC ELEC. POWER v. CALIFORNIA UNION INS.

Civ. A. No. 88-2091.

777 F.Supp. 968 (1991)

The POTOMAC ELECTRIC POWER COMPANY, Plaintiff, v. CALIFORNIA UNION INSURANCE CO., et al., Defendants.

United States District Court, D. Columbia.

September 30, 1991.


Attorney(s) appearing for the Case

Arnold M. Weiner, Steven A. Allen, Bruce L. Mann, Hazel & Thomas, Baltimore, Md., for plaintiff.

Dennis M. Flannery, James Robertson, John R. Read, Wilmer, Cutler & Pickering, Washington, D.C., for defendant California Union Ins.

Thomas S. Schaufelberger, Scott P. Boylan, Drinker, Biddle & Reath, Washington, D.C., for defendant Empl. Ins. of Wausau.

Ignatius J. Melito, Stephen V. Kovarik, Siff, Rosen & Parker, P.C., New York City, for defendant First State Ins.

Barry R. Poretz, Laura E. Nachowitz, Jordan, Coyne, Savits & Lopata, Washington, D.C., for defendant Nat. Union Fire.

Joseph S. Crociata, Gilberg & Kurent, Washington, D.C., David Morgans, Williams & Montgomery, Chicago, Ill., for defendant Southern American Ins.

Michael Nussbaum, Jeffrey D. Robinson, Nussbaum & Wald, Washington, D.C., Thomas J. Quinn, Mary Ann D'Amato, John Spadaro, Mendes & Mount, New York City, for defendants London Market Insurers, North River Ins. Co. and American Centennial Ins. Co.

Lewis R. Christ (Receiver), Director of Ins., State of Mo., Jefferson City, Mo., Howard M. Berg, Berg, Tishe & Cottrell, P.A., Wilmington, Del., for defendant Transit Cas. Co.


MEMORANDUM OPINION

JOHN H. PRATT, District Judge.

I. Introduction

This case presents the Court with an overriding issue: are insurance companies required to indemnify policyholders for expenditures made by them to remedy environmental damage caused by a third party?

The plaintiff, a large electric utility which primarily serves the District of Columbia and parts of Maryland, purchased twenty...

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