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HARVARD INDUSTRIES v. AETNA CAS. & SURETY COMPANY

273 N.J. Super. 467 (1993)

642 A.2d 438

HARVARD INDUSTRIES, INC.; HARMAN AUTOMOTIVE, INC.; HARMAN AUTOMOTIVE — PUERTO RICO, INC.; THE KINGSTON-WARREN CORPORATION; HAYES-ALBION CORPORATION; HARVARD TRANSPORTATION CORPORATION; TRIM TRENDS, INC.; AND DECKERVILLE DIE FORM CO., PLAINTIFFS, v. AETNA CASUALTY & SURETY COMPANY; AFFILIATED FM INSURANCE COMPANY; ALLSTATE INSURANCE COMPANY; AMERICAN EMPIRE SURPLUS LINES INSURANCE COMPANY (FORMERLY KNOWN AS GREAT AMERICAN SURPLUS LINES INSURANCE COMPANY); AMERICAN GUARANTEE AND LIABILITY INSURANCE COMPANY; AMERICAN MOTORISTS INSURANCE COMPANY; CALIFORNIA UNION INSURANCE COMPANY; CHARTER OAK FIRE INSURANCE COMPANY; CHICAGO INSURANCE COMPANY; COLUMBIA CASUALTY COMPANY; CONTINENTAL CASUALTY COMPANY; CONTINENTAL INSURANCE COMPANY; FIREMAN'S FUND INSURANCE COMPANY; FIRST STATE INSURANCE COMPANY; FIRST STATE UNDERWRITERS AGENCY OF NEW ENGLAND CORPORATION; GREAT AMERICAN INSURANCE COMPANY; HARBOR INSURANCE COMPANY; HARTFORD ACCIDENT AND INDEMNITY COMPANY; HIGHLANDS INSURANCE CO.; HOME INDEMNITY COMPANY; HOME INSURANCE COMPANY; H.S. WEAVER (UNDERWRITING) AGENCIES, LIMITED; INSCO LIMITED; INSURANCE COMPANY OF NORTH AMERICA; INTEGRITY INSURANCE COMPANY; LEXINGTON INSURANCE COMPANY; LIBERTY MUTUAL INSURANCE COMPANY; NEW JERSEY PROPERTY-LIABILITY INSURANCE GUARANTY ASSOCIATION; NORTH STAR REINSURANCE CORPORATION; NORTHWESTERN NATIONAL INSURANCE CO.; ST. PAUL FIRE AND MARINE INSURANCE COMPANY; SAFETY MUTUAL CASUALTY COMPANY; THE TRAVELERS INDEMNITY COMPANY; TRAVELERS INSURANCE COMPANY; TWIN CITY FIRE INSURANCE COMPANY; UNDERWRITING MEMBERS OF LLOYDS OF LONDON; UNITED STATES FIRE INSURANCE COMPANY; ZURICH INSURANCE COMPANY; AND DOES 1-500, DEFENDANTS.

Superior Court of New Jersey, Law Division Civil Part Monmouth County.

Decided November 18, 1993.

Attorney(s) appearing for the Case

Martin F. Siegal, for plaintiffs (Farer Siegal Fersko, attorneys).

S. Robert Allcorn, for defendant American Empire Surplus Lines Insurance Company (Rabner, Allcorn & Meislik, attorneys).

Daniel I Schlessinger, Jan M. Michaels, for defendant American Empire Surplus Lines Insurance Company (Lord, Bissell & Brook, attorneys).

Elizabeth Williams, for defendant Aetna Casualty and Surety Company (Harwood Lloyd, attorneys).

Shanley & Fisher, for defendants The Travelers Indemnity Co. and Charter Oak Fire Insurance Co.

FISHER, J.S.C.

This action concerns the interpretation and application of what is known in the insurance industry as the "absolute pollution exclusion." Such an exclusion, contained in a policy of insurance issued by defendant American Empire Surplus Lines Insurance Company ("American Empire") to plaintiffs, gave rise to the present dispute. This absolute pollution exclusion derives its name from the fact that it does...

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