OUTBOARD MARINE CORP. v. LIBERTY MUT. INS. CO.

Nos. 71753, 71761.

607 N.E.2d 1204 (1992)

154 Ill.2d 90

180 Ill.Dec. 691

OUTBOARD MARINE CORPORATION, Appellant and Cross-Appellee, v. LIBERTY MUTUAL INSURANCE COMPANY et al. (Liberty Mutual Insurance Company, Appellee and Cross-Appellant).

Supreme Court of Illinois.

Rehearing Denied February 1, 1993.


Attorney(s) appearing for the Case

Louis W. Brydges, Sr., and Leslie A. Peterson, Brydges, Riseborough, Morris, Franke & Miller, Waukegan, Thomas W. Johnson, Jr., and Michael G. Ermer, of Irell & Manella, Newport Beach, CA, and Richard Kissel, Gardner, Carton & Douglas, Chicago, for appellant and cross-appellee Outboard Marine Corporation.

James P. Whitters III, Kim V. Marrkand, Anthony A. Bongiorno and Jeffrey W. Kobrick, of Gaston & Snow, Boston, MA and Paul S. Chervin and Linda E. Spring, Wildman, Harrold, Allen & Dixon, Waukegan, for appellee and cross-appellant Liberty Mutual Insurance Co.

Jay V. Krafsur and Jeffrey L. Kaser, Rivkin, Radler & Kremer, Chicago, for appellee Commercial Union Insurance Co.

Margaret J. Orbon, Clausen, Miller, Gorman, Caffrey & Witous, P.C., Chicago, and Paul R. Koepff, John L. Altieri, Jr., and Aaron F. Fishbein, Mudge, Rose, Guthrie, Alexander & Ferdon, of New York City, for appellee Insurance Company of North America.

Mary Beth Denefe, Audrey S. Hanrahan and Eileen N. Miller, Haskell & Perrin, Chicago, and Lorraine M. Armenti and Gary S. Kull, McElroy, Deutsch & Mulvaney, Morristown, NJ, for appellee International Insurance Co.

Gleason, McGuire & Shreffler, Chicago (Philip J. McGuire and Charles L. Philbrick, of counsel,) for appellee Northbrook Insurance Co.

Robert A. Creamer, John S. Vishneski III, Michael J. Hughes and Todd G. Zimmerman, Keck, Mahin & Cate, Chicago, for amicus curiae Rust-Oleum Corporation.

James T. Price, Stephanie A. Mathews and Thomas J. Wilcox, Spencer, Fane, Britt & Browne, Kansas City, MO, and Kevin M. Forde and Katrina Veerhusen, Chicago, for amici curiae Illinois Manufacturers' Association et al.

Robert L. Graham, John H. Mathias, Jr., Barry Sullivan, Thomas C. Buchele and John D. Schugrue, Jenner & Block, Chicago, for amici curiae Peoples Gas Light & Coke Co. et al.

Thomas W. Brunner, Robert B. Bell and Stephen D. Goldman, Wiley, Rein & Fielding, Washington, DC, and Terry Rose Saunders, Susman, Saunders & Buehler, Chicago, for amicus curiae Insurance Environmental Litigation Association.

Lord, Bissell & Brook, Chicago (John B. Haarlow, Stephen M. Murray, Daniel I. Schlessinger and Diane I. Jennings, of counsel,) and Peterson & Ross, Chicago (Richard L. Blatt, Larry R. Eaton and Brian A. Frankl, of counsel,) for amicus curiae John Richard Ludbrook Youell.

Terry Rose Saunders, Susman, Saunders & Buehler, Chicago, for amici curiae Bituminous Casualty Corporation et al. and amici curiae Western States Insurance Co. et al.

Martha Churchill, Chicago, and Eugene R. Anderson, Jordan S. Stanzler and Michael R. Magaril, Anderson, Kill, Olick & Oshinsky, PC, of New York City, for amicus curiae Mid-America Legal Foundation.

Patrick E. Maloney, Tressler, Soderstrom, Maloney & Priess, Chicago, for amici curiae Lumbermens Mutual Casualty Co. et al.


Justice BILANDIC delivered the opinion of the court:

This consolidated appeal involves a coverage dispute between the plaintiff-insured, Outboard Marine Corporation (OMC), and its primary and excess insurance carriers, Liberty Mutual Insurance Company (Liberty Mutual), Commercial Union Insurance Company (Commercial Union), Insurance Company of North America (INA), International Insurance Company (International), and Northbrook...

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