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NSP v. FIDELITY & CAS. CO. OF NEW YORK

No. C3-92-2363.

523 N.W.2d 657 (1994)

NORTHERN STATES POWER COMPANY Appellant, v. FIDELITY AND CASUALTY COMPANY OF NEW YORK, Defendant, St. Paul Fire and Marine Insurance Company, as itself and as successor in interest to Mercury Insurance Company, et al., Petitioners, Respondent.

Supreme Court of Minnesota.

September 30, 1994.

Attorney(s) appearing for the Case

Larry D. Espel, Greene Espel, Minneapolis, for appellant.

Charles E. Spevacek, Meagher & Geer, Minneapolis, for respondent.

Charles E. Lundberg, Bassford, Heckt, Lockhart, Truesdell & Briggs, P.A., Minneapolis, and Wiley, Rein & Fielding, Washington, DC, for amicus Ins. Environmental Litigation Ass'n.

Heard, considered and decided by the court en banc.

OPINION

KEITH, Chief Justice.

In this appeal, we must decide how to allocate damages between multiple insurers on the risk for pollution clean-up costs. These costs were incurred by the insured, Northern States Power (NSP) when it complied with a Minnesota Pollution Control Agency (MPCA) order to clean up property contaminated by operations as a coal-tar gasification site in Faribault, Minnesota. NSP commenced this action for declaratory judgment in 1989...

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