MORTON INTERN. v. GENERAL ACC. INS.


134 N.J. 1 (1993)

629 A.2d 831

MORTON INTERNATIONAL, INC., SUCCESSOR TO MORTON THIOKOL, INC., NOW NAMED THIOKOL CORPORATION, PLAINTIFF-APPELLANT AND CROSS-RESPONDENT, v. GENERAL ACCIDENT INSURANCE COMPANY OF AMERICA, A PENNSYLVANIA CORPORATION (SUCCESSOR TO THE POTOMAC INSURANCE COMPANY AND THE UNITED STATES BRANCH OF GENERAL ACCIDENT FIRE AND LIFE ASSURANCE CORPORATION, LTD.); AFFILIATED FM INSURANCE COMPANY, A RHODE ISLAND CORPORATION; CONTINENTAL CASUALTY COMPANY, AN ILLINOIS CORPORATION; FIRST STATE INSURANCE COMPANY, A DELAWARE CORPORATION, DEFENDANTS-RESPONDENTS, AND LIBERTY MUTUAL INSURANCE COMPANY, A MASSACHUSETTS CORPORATION; AMERICAN HOME ASSURANCE COMPANY, A NEW YORK CORPORATION; INSURANCE COMPANY OF NORTH AMERICA, A PENNSYLVANIA CORPORATION; UNDERWRITERS AT LLOYD'S LONDON, AND CERTAIN SUBSCRIBING LONDON MARKET INSURANCE COMPANIES, DEFENDANTS-RESPONDENTS AND CROSS-APPELLANTS, AND AETNA CASUALTY & SURETY COMPANY, A CONNECTICUT CORPORATION; AMERICAN CENTENNIAL INSURANCE CO., A DELAWARE CORPORATION; FIREMAN'S FUND INSURANCE COMPANY, A CALIFORNIA CORPORATION; GRANITE STATE INSURANCE COMPANY, A NEW HAMPSHIRE CORPORATION; THE HARTFORD ACCIDENT & INDEMNITY COMPANY, A CONNECTICUT CORPORATION; INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA, A PENNSYLVANIA CORPORATION; INTEGRITY INSURANCE COMPANY, A NEW JERSEY CORPORATION; INTERNATIONAL INSURANCE COMPANY, AN ILLINOIS CORPORATION; LEXINGTON INSURANCE COMPANY, A DELAWARE CORPORATION; MISSION INSURANCE COMPANY, A CALIFORNIA CORPORATION; MISSION NATIONAL INSURANCE COMPANY, A CALIFORNIA CORPORATION; NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, A PENNSYLVANIA CORPORATION; AND NORTHBROOK INSURANCE COMPANY, AN ILLINOIS CORPORATION, DEFENDANTS.

The Supreme Court of New Jersey.

Decided July 21, 1993.


Attorney(s) appearing for the Case

George F. Kugler, Jr., argued the cause for appellant and cross-respondent (Archer & Greiner, attorneys; Mr. Kugler, Edward C. Laird, and Gary J. Lesneski, on the briefs).

Elliott Abrutyn argued the cause for respondent General Accident Insurance Company of America (Morgan, Melhuish, Monaghan, Arvidson, Abrutyn & Lisowski, attorneys; Mr. Abrutyn and Timothy Saia, on the brief).

William S. Wachenfeld argued the cause for respondent Affiliated FM Insurance Company (Mendes & Mount, attorneys for Affiliated FM Insurance Company, and DeCotiis & Pinto, attorneys for First State Insurance Company; Mr. Wachenfeld, Rosemary A. Juster, James A. Farber, and Robert F. Walsh, on the brief).

John C. Sullivan argued the cause for respondent and cross-appellant Liberty Mutual Insurance Company (Manta and Welge, attorneys).

Paul R. Koepff, a member of the New York Bar, argued the cause for respondents and cross-appellants Underwriters at Lloyd's London, and certain subscribing London Market Insurance Companies (Ronca, McDonald & Hanley, attorneys for Underwriters at Lloyd's London; Mudge, Rose, Guthrie, Alexander & Ferdon, attorneys for Insurance Company of North America; and Golden, Rothschild, Spagnola & DiFazio, attorneys for American Home Assurance Co.; Mr. Koepff, Robert J. Kovacs, Paul A. Leodori, W. Cary Edwards, Stephen V. Kovarik, and Charles W. Miller, III, of counsel).

Eugene R. Anderson, a member of the New York Bar, argued the cause for amicus curiae New Jersey State League of Municipalities (Stickel, Koenig & Sullivan and Anderson, Kill, Olick & Oshinsky, attorneys; Mr. Anderson, John A. MacDonald, Ralph J. Kmiec, and Michael A. Pane, of counsel; Mr. MacDonald and Fred G. Stickel, III, on the brief).

Richard F. Engel, Deputy Attorney General, argued the cause for amicus curiae State of New Jersey (Robert J. Del Tufo, Attorney General of New Jersey, attorney; Mary C. Jacobson, Deputy Attorney General, of counsel; Karen L. Jordan and John F. Dickinson, Jr., Deputy Attorneys General, on the brief).

John P. Cascio submitted a letter in lieu of brief on behalf of respondent Continental Casualty Company (Chasan, Leyner, Tarrant & Lamparello, attorneys).

Clyde A. Szuch, Donald W. Kiel, Paul E. Breene, Michael L. Rodburg, Albert G. Besser, and Jerry Fitzgerald English submitted a brief on behalf of amici curiae Allied Signal, Inc., The American Fiber Manufacturers Association, The American Petroleum Institute, Armstrong World Industries, Inc., Athlone Industries, Inc., The BOC Group, Inc., The Chemical Manufacturers Association, Hanson Industries, International Business Machines Corporation, J.T. Baker, Inc., Nestle Food Company, Olin Corporation, Public Service Electric & Gas Company, Reichhold Chemicals, Inc., Rohm and Haas Company, Safety Light Corporation, Sandvik, Inc., Schering-Plough Corporation, USR Industries Inc., Warner-Lambert Company, Waste Management, Inc., and Westinghouse Electric Corporation (Hannoch Weisman, attorneys for The American Fiber Manufacturers Association, The American Petroleum Institute, The Chemical Manufacturers Association, International Business Machines Corporation, Olin Corporation, Rohm and Haas Company, Hanson Industries, Safety Light Corporation, and USR Industries, Inc.; Anderson, Kill, Olick & Oshinsky, attorneys for Allied-Signal, Inc., The BOC Group, Inc., Reichhold Chemicals, Inc., and Schering-Plough Corporation; Lowenstein, Sandler, Kohl, Fisher & Boylan, attorneys for Westinghouse Electric Corporation; Kerby, Cooper, English, Danis & Garvin, attorneys for Waste Management, Inc.).

Victor C. Harwood, III, submitted a brief on behalf of amicus curiae Aetna Casualty & Surety Company (Harwood Lloyd, attorneys; Mr. Harwood, Brian J. Coyle, and Edward Zampino, on the brief).

Wendy L. Mager submitted a brief on behalf of amicus curiae Insurance Environmental Litigation Association (Smith, Stratton, Wise, Heher, Brennan, attorneys).


The opinion of the Court was delivered by STEIN, J.

This case concerns insurance coverage for environmental pollution. The events affecting the coverage claims before us span a period of several decades, in the course of which societal indifference concerning environmental-pollution damage has been supplanted by a heightened awareness of the need for environmentally-sound waste-disposal practices and an increasingly aggressive governmental effort to remediate the...

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