No. 1058, Docket 90-7940.

936 F.2d 1420 (1991)

STATE OF NEW YORK, Plaintiff, v. AMRO REALTY CORPORATION; Harry Moskowitz and David Moskowitz, Defendants-Third-Party Plaintiffs-Appellants, v. ZURICH INSURANCE COMPANY; Graphic Arts Mutual Insurance Company; Federal Insurance Company and Home Insurance Company, Third-Party Defendants, Atlantic Mutual Insurance Company; Unigard Security Insurance Company; Lumbermens Mutual Casualty Company and First State Insurance Company, Third-Party Defendants-Appellees.

United States Court of Appeals, Second Circuit.

Decided June 25, 1991.

Attorney(s) appearing for the Case

Hiram D. Gordon, Janvey, Berglas & Gordon, New York City, for defendants-third-party plaintiffs-appellants.

James M. Sweet, Paul McDonald, Paul St. Antoine, Drinker Biddle & Reath, Philadelphia, Pa., for third-party defendant-appellee, Lumbermens Mut. Cas. Co.

Andrew Feldman, Barbara L. Schifeling, Damon & Morey, Buffalo, N.Y., for third-party defendant-appellee, Unigard Sec. Ins. Co.

Lewis G. Adolfsen, Steven G. Adams, Amy Gallent, Siff, Rosen & Parker, P.C., New York City, for third-party defendant-appellee, First State Ins. Co.

Michael F. Close, Barry, McTiernan & Moore, New York City, for third-party defendant-appellee, Atlantic Mut. Ins. Co.

Thomas W. Brunner, Laura A. Foggan, Francis M. Gaffney, Wiley, Rein & Fielding, Washington, D.C., for amicus curiae, Insurance Environmental Litigation Ass'n.

Before NEWMAN and ALTIMARI, Circuit Judges, and CONBOY, District Judge.

CONBOY, District Judge:

This appeal concerns an insurance coverage dispute. The insured parties are the defendants/third-party plaintiffs, AMRO Realty Corp. ("AMRO") and David and Harry Moskowitz (collectively, "the insureds"). They have been sued by The State of New York for violations of the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), 42 U.S.C. § 9601 et seq., and for creating and maintaining a public nuisance, in...

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