DIAMOND SHAMROCK CHEMICALS v. AETNA


258 N.J. Super. 167 (1992)

609 A.2d 440

DIAMOND SHAMROCK CHEMICALS COMPANY, PLAINTIFF-APPELLANT, v. THE AETNA CASUALTY & SURETY COMPANY; THE LONDON MARKET INSURERS: ACCIDENT AND CASUALTY COMPANY OF WINTERTHUR; ALBA GENERAL INSURANCE COMPANY LTD.; ALLIANZ INTERNATIONAL INSURANCE COMPANY LTD.; ANDREW WEIR INSURANCE COMPANY LTD.; ANGLO-FRENCH INSURANCE COMPANY LTD.; ARGONAUT NORTHWEST INSURANCE COMPANY LTD.; ASSICURAZIONI GENERALI S.P.A. (U.K. BRANCH); AVIATION AND GENERAL INSURANCE COMPANY LTD.; BERMUDA FIRE & MARINE INSURANCE COMPANY LTD.; BISHOPSGATE INSURANCE LIMITED; BRITISH AVIATION INSURANCE COMPANY LTD.; BRITISH NATIONAL INSURANCE LTD.; BRITISH NATIONAL INSURANCE COMPANY LTD. AS SUCCESSOR TO NORTH ATLANTIC INSURANCE COMPANY LTD.; BRITTANY INSURANCE COMPANY LTD.; BRYANSTON INSURANCE COMPANY; CAMOMILE UNDERWRITING AGENCIES LTD. ON BEHALF OF COMPAGNIE D'ASSURANCES MARITIMES ARIENNES ET TERRESTRES; CITY GENERAL INSURANCE COMPANY LTD.; CNA REINSURANCE OF LONDON LTD.; COMPAGNIE EUROPEENE D'ASSURANCES INDUSTRIELLES S.A.; COMPANHIA DE SEGUROS IMPERIO; COMPANIA AGRICOLA DE SEGUROS, S.A.; DART INSURANCE COMPANY LTD.; THE DOMINION INSURANCE COMPANY LTD.; DOMINION INSURANCE COMPANY LTD. ON BEHALF OF THE ANGLO-SAXON INSURANCE ASSOCIATION LTD.; DOMINION INSURANCE COMPANY LTD. ON BEHALF OF THE BRITISH MERCHANTS INSURANCE COMPANY LTD.; DOMINION INSURANCE COMPANY LTD. ON BEHALF OF LONDON AND EDINBURGH INSURANCE COMPANY LTD.; DOMINION INSURANCE CO. LTD. ON BEHALF OF THE ROYAL SCOTTISH INSURANCE CO.; DOMINION INSURANCE COMPANY LTD. ON BEHALF OF THE TRENT INSURANCE COMPANY LTD.; DOMINION INSURANCE COMPANY LTD. ON BEHALF OF THE VANGUARD INSURANCE CO. LTD.; DOMINION INSURANCE COMPANY LTD. ON BEHALF OF THE WORLD MARINE AND GENERAL INSURANCE CORPORATION; DRAKE INSURANCE COMPANY LTD.; ECONOMIC INSURANCE COMPANY LTD.; THE EDINBURGH ASSURANCE CO. NUMBER 2 ACCOUNT; EL PASO INSURANCE COMPANY LTD.; ENGLISH AND AMERICAN INSURANCE COMPANY LTD.; EXCESS INSURANCE COMPANY LTD.; FIDELIDADE GRUPO SEGURADOR; FOLKSAM INTERNATIONAL INSURANCE COMPANY (UK) LTD.; HEDDINGTON INSURANCE COMPANY (UK) LTD.; HELVETIA ACCIDENT SWISS INSURANCE COMPANY; HIGHLANDS UNDERWRITING AGENCY ON BEHALF OF HIGHLANDS INSURANCE CO.; HIGHLANDS UNDERWRITING AGENCY ON BEHALF OF AMERICAN HOME ASSURANCE CO.; HIGHLANDS UNDERWRITING AGENCY ON BEHALF OF LONDON AND EDINBURGH INSURANCE CO.; INSCO LTD.; LA ROYAL BELGE GROUP; LATINO AMERICANA DE REASUGURSOS S.A.; LEXINGTON INSURANCE COMPANY LTD.; LONDON & EDINBURGH GENERAL INSURANCE COMPANY LTD.; LONDON AND OVERSEAS COMPANY PLC (`A' ACCOUNT); LONDON AND OVERSEAS CO. PLC (`A' ACCOUNT) AS SUCCESSOR TO HULL UNDERWRITERS ASSOCIATION; LOUISVILLE INSURANCE COMPANY LTD.; LUDGATE INSURANCE COMPANY LTD.; MINSTER INSURANCE COMPANY LTD.; MUTUAL REINSURANCE COMPANY LTD.; NATIONAL CASUALTY COMPANY; NATIONAL CASUALTY COMPANY OF AMERICA LTD.; NEW INDIA INSURANCE COMPANY LTD.; ORION INSURANCE COMPANY LTD.; PRUDENTIAL ASSURANCE COMPANY LTD.; RIVER THAMES INSURANCE COMPANY LTD.; SLATER WALKER INSURANCE COMPANY LTD.; SOUTHERN INSURANCE COMPANY LTD. (NOW KNOWN AS THE BOX HILL INVESTMENT LTD.); SOVEREIGN MARINE AND GENERAL INSURANCE COMPANY LTD.; SPHERE INSURANCE COMPANY LTD.; STOREBRAND INSURANCE COMPANY (UK) LTD.; STRONGHOLD INSURANCE COMPANY LTD.; SUMITOMO MARINE & FIRE INSURANCE COMPANY LTD.; SUMITOMO MARINE & FIRE INSURANCE COMPANY (EUROPE) LTD.; ST. KATHERINE INSURANCE COMPANY LTD.; SWISS NATIONAL INSURANCE CO. LTD.; SWISS UNION GENERAL INSURANCE CO.; THE TAISO MARINE & FIRE INSURANCE COMPANY (UK) LTD.; TERRA NOVA INSURANCE COMPANY LTD.; THREADNEEDLE INSURANCE COMPANY LTD.; THE TOKIO MARINE & FIRE INSURANCE (UK) LTD.; TUREGUM INSURANCE COMPANY LTD.; UNITED STANDARD INSURANCE COMPANY LTD.; UNIVERSAL REINSURANCE CORPORATION OF NEW JERSEY AS SUCCESSOR TO BELLEFONTE INSURANCE COMPANY; WALBROOK INSURANCE COMPANY LTD.; WINTERTHUR SWISS INSURANCE COMPANY, WORLD AUXILIARY INSURANCE CORPORATION LTD.; YASUDA FIRE & MARINE INSURANCE COMPANY (UK) LTD.; AIU INSURANCE COMPANY; AMERICAN CENTENNIAL INSURANCE COMPANY; AMERICAN EXCESS INSURANCE COMPANY; AMERICAN HOME ASSURANCE COMPANY; AMERICAN RE-INSURANCE COMPANY; CALIFORNIA UNION INSURANCE COMPANY; COMMERCIAL UNION INSURANCE COMPANY (SUCCESSOR TO EMPLOYERS LIABILITY ASSURANCE CORPORATION LTD.); EMPLOYERS MUTUAL CASUALTY COMPANY; EVANSTON INSURANCE COMPANY; FIREMAN'S FUND INSURANCE COMPANY; FIRST STATE INSURANCE COMPANY; GENERAL REINSURANCE CORPORATION; GIBRALTAR CASUALTY COMPANY; GRANITE STATE INSURANCE COMPANY; THE HOME INSURANCE COMPANY; INSURANCE COMPANY OF NORTH AMERICA (SUCCESSOR TO INDEMNITY INSURANCE COMPANY OF NORTH AMERICA); LEXINGTON INSURANCE COMPANY, LTD.; NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA.; NORTH STAR REINSURANCE CORPORATION; PACIFIC EMPLOYERS INSURANCE COMPANY; PRUDENTIAL REINSURANCE COMPANY; RANGER INSURANCE COMPANY; ROYAL INDEMNITY COMPANY; UNDERWRITERS AT LLOYD'S LONDON, DEFENDANTS-RESPONDENTS, CROSS-APPELLANTS, AND ARROW LIFE INSURANCE COMPANY (SUCCESSOR TO SLATER, WALKER INSURANCE COMPANY); ASSICURAZIONI GENERALI; ASSICURAZIONI GENERALI S.P.A. (U.K. BRANCH); ASSICURAZIONI GENERALI DI TRIESTE E VENEZIA S.P.A.; ATLANTA INTERNATIONAL INSURANCE COMPANY; BELLEFONTE REINSURANCE COMPANY LIMITED (SUCCESSOR TO BELLEFONTE INSURANCE COMPANY); BELLEFONTE INSURANCE COMPANY (U.K. BRANCH); BRITISH MERCHANTS INSURANCE COMPANY LTD.; BRYANSTON INSURANCE COMPANY LTD.; COMPAGNIE D'ASSURANCES MARITIMES ARIENNES ET TERRESTRES; THE CONTINENTAL INSURANCE COMPANY; DART AND KRAFT INSURANCE COMPANY LIMITED; THE FIDELITY AND CASUALTY COMPANY OF NEW YORK; FRIENDS PROVIDENT LIFE OFFICE (SUCCESSOR TO SOUTHERN INSURANCE COMPANY); GREAT SOUTHWEST FIRE INSURANCE COMPANY; HIGHLANDS INSURANCE COMPANY; IMPERIO COMPANHIA DE SEGUROS; THE INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA; LA ROYALE BELGE I.R.S.A. D'ASSURANCES; LATINO AMERICANO DE REASUGUROS; LONDON GUARANTEE AND ACCIDENT COMPANY OF NEW YORK; NATIONAL CASUALTY COMPANY OF AMERICA LTD.; NORTH ATLANTIC INSURANCE COMPANY LIMITED; PACIFIC AND GENERAL INSURANCE COMPANY LTD.; REPUBLIC INSURANCE COMPANY; ROYAL SCOTTISH INSURANCE COMPANY LTD.; SECURITY INSURANCE COMPANY OF HARTFORD (SUCCESSOR TO NEW AMSTERDAM CASUALTY COMPANY); SOVEREIGN MARINE & GENERAL INSURANCE COMPANY LTD. `C' ACCOUNT; SOVEREIGN MARINE & GENERAL INSURANCE COMPANY LTD. H.D.N. ACCOUNT; ST. KATHERINE INSURANCE CO. PLC; ST. KATHERINE INSURANCE COMPANY LTD. (NO. 2 ACCOUNT); ST. KATHERINE INSURANCE CO. LTD. (X ACCOUNT); ST. PAUL MERCURY INSURANCE COMPANY; SUMITOMO MARINE AND FIRE INSURANCE COMPANY LTD. (TOKYO); SWISS NATIONAL INSURANCE COMPANY LIMITED (BASLE); SWISS UNION GENERAL INSURANCE CO.; TRANSIT CASUALTY COMPANY; TRENT INSURANCE COMPANY LIMITED; TUREGUM INSURANCE COMPANY; TWIN CITY FIRE INSURANCE COMPANY; UNITED STATES FIRE INSURANCE COMPANY; VANGUARD INSURANCE COMPANY LIMITED, DEFENDANTS.

Superior Court of New Jersey, Appellate Division.

Decided April 6, 1992.

Reargued May 19, 1992.

Decided June 4, 1992.


Attorney(s) appearing for the Case

Michael P. Tierney argued the cause for appellant (Pitney, Hardin, Kipp & Szuch, attorneys; James C. Pitney and Dennis R. LaFiura on the brief; Cahill Gordon & Reindel (Raymond L. Falls, Jr., Leonard A. Spivak, Michael P. Tierney, Thorn Rosenthal and Peter F. Lake) of counsel).

Allan B. Taylor argued the cause for respondent The Aetna Casualty and Surety Company (Connell, Foley & Geiser and Day, Berry & Howard, attorneys; John B. LaVecchia of CF & G and Allan B. Taylor, Thomas J. Groark, Jr., Scott P. Moser, Ruth A. Kurien of DB & H on the joint brief).

Robert J. Bates, Jr. argued the cause for respondents American Re-Insurance Company and American Excess Insurance Company (Phelan, Pope & John, Ltd. and Budd, Larner, Gross, Picillo, Rosenbaum, Greenberg & Sade, attorneys; Robert J. Bates, Jr. and Maryann C. Hayes of PP & J and Carl Greenberg of BLGPRG & S on the joint brief).

Peter I. Sheft argued the cause for respondents London Market Insurers (Sheft & Sweeney, attorneys; Peter I. Sheft, David Holmes and Rosemary A. Juster on the joint brief).

Paul R. Koepff argued the cause for respondents Insurance Company of North America, California Union Insurance Company and Pacific Employers Insurance Company (Mudge, Rose, Guthrie, Alexander & Ferdon and Ribis, Graham, Verdon & Curtin, attorneys; Paul R. Koepff and George A. Pierce of MRGA & F and Thomas R. Curtin of RGV & C on the joint brief).

Stephen D. Cuyler argued the cause for respondents General Reinsurance Company, Gibralter Casualty Insurance Company, North Star Reinsurance Company, Prudential Reinsurance Company, Ranger Insurance Company, Employers Mutual Insurance Company and American Centennial Insurance Company (Cuyler, Burk & Matthews, attorneys; Stephen D. Cuyler and Peter Petrou on the joint brief).

Respondent Home Insurance Company relied on the argument of Stephen D. Cuyler (Morgan, Melhuish, Monaghan, Arvidson, Abrutyn & Lisowski, attorneys; Henry Morgan on the joint brief).

Respondent Commercial Union Insurance Company relied on the argument of Stephen D. Cuyler (Griffith & Burr, attorneys; James W. Christie on the joint brief).

Respondent Fireman's Fund Insurance Company relied on the argument of Stephen D. Cuyler (Kunzman, Coley, Yospin & Berstein and Gilberg & Kurent, attorneys; Steven A. Kunzman of KCY & B and K. Thomas Shahriari of G & K on the joint brief).

Respondents National Union Fire Insurance Company of Pittsburgh, PA., American International Underwriters, American Home Assurance Company, Lexington Insurance Company and Granite State Insurance Company relied on the argument of Stephen D. Cuyler (Garrity, Fitzpatrick, Graham, Hawkins & Favetta, attorneys; Antonio D. Favetta on the joint brief). Respondents also filed a separate brief.

Respondents The Hartford Accident & Indemnity Co., First State Insurance Company and Twin City Fire Insurance Co. relied on the argument of Stephen D. Cuyler (Tompkins, McGuire & Wachenfeld, attorneys; Rex K. Harriott on the joint letter-brief).

Respondent Royal Indemnity Co. relied on the argument of Stephen D. Cuyler (Golden, Rothschild, Spagnola & DiFazio, attorneys; Charles W. Miller on the joint letter-brief).

Respondent Evanston Insurance Co. relied on the argument of Stephen D. Cuyler (Wilson, Elser, Moskowitz, Edelman & Dicker, attorneys; Thomas F. Quinn on the joint letter-brief).

Respondent Atlanta International Insurance Co. relied on the argument of Stephen D. Cuyler (Feuerstein, Sachs, Maitlin & Fleming, attorneys; Allan Maitlin on the joint letter-brief).

Smith, Stratton, Wise, Heher & Brennan submitted a brief on behalf of Amicus Curiae Insurance Environmental Litigation Association (Wendy L. Mager on the brief; Wiley, Rein & Fielding (Thomas W. Brunner, Marilyn E. Kerst, Frederick S. Ansel) of counsel).

Lowenstein, Sandler, Kohl, Fisher & Boylan submitted a brief on behalf of Amicus Curiae The American Petroleum Institute, The Chemical Manufacturers Association, CF & I Steel Corporation, International Business Machines Corporation, ICI Americas, Inc., Olin Corporation, Public Service Electric and Gas Company, Sandvik, Inc., and Westinghouse Electric Corporation (Gregory B. Reilly on the brief; Covington & Burling (William H. Allen, William F. Greaney, Kelly Knivila) and Kirkpatrick & Lockhart (Peter J. Kalis, Thomas M. Reiter, James V. Corbelli) of counsel).

Stickel, Koenig & Sullivan submitted a brief on behalf of Amicus Curiae New Jersey State League of Municipalities (Ralph J. Kmiec on the brief).

Hannoch Weisman submitted a brief on behalf of Amicus Curiae USR Industries, Inc., USR Metals, Inc., USR Lighting, Inc., Safety Light Corporation, USR Chemicals, Inc. and U.S. Natural Resources, Inc. (Irvin M. Freilich of counsel; Kevin J. Bruno on the brief).

Before Judges ANTELL, LONG and BAIME.


The opinion of the court was delivered by BAIME, J.A.D.

This appeal and cross-appeal present a myriad of complex questions concerning the construction of a variety of insuring agreements contained in a series of comprehensive general liability insurance policies issued successively over a period of approximately thirty years. Also at issue is the applicability and interplay of standard form "occurrence-based" language and the war risk exclusion to claims arising out...

Let's get started

Leagle.com

Welcome to the leading source of independent legal reporting
Sign on now to see your case.
Or view more than 10 million decisions and orders.

  • Updated daily.
  • Uncompromising quality.
  • Complete, Accurate, Current.

Listed below are the cases that are cited in this Featured Case. Click the citation to see the full text of the cited case. Citations are also linked in the body of the Featured Case.

Cited Cases

  • No Cases Found

Listed below are those cases in which this Featured Case is cited. Click on the case name to see the full text of the citing case.

Citing Cases