IN RE TEXAS EASTERN TRANSMISSION CORP. PCB LIT.

No. 92-1638.

15 F.3d 1249 (1994)

In re TEXAS EASTERN TRANSMISSION CORP. PCB CONTAMINATION INSURANCE COVERAGE LITIGATION. The FIDELITY & CASUALTY CO. OF NEW YORK v. The TEXAS EASTERN TRANSMISSION CORP. ASSOCIATED ELECTRIC & GAS INSURANCE SERVICES, LTD.; National Surety Corporation v. TEXAS EASTERN TRANSMISSION CORPORATION; Fidelity & Casualty Insurance Company of New York; Certain Underwriters at Lloyds of London, Including the Insurance Company of Ireland; Aetna Casualty and Surety Company; American Home Assurance Company; Boston Old Colony Insurance Company; Continental Casualty Insurance Company; First State Insurance Company; Highlands Insurance Company; The Home Insurance Company; Insurance Company of North America; Insurance Company of the State of Pennsylvania; International Insurance Company; Lexington Insurance Company; Midland Insurance Company; Mutual Marine Insurance Company; Prudential Reinsurance Company; Ranger Insurance Company; Republic Insurance Company; Stonewall Insurance Company; Pennsylvania Insurance Guaranty Association; United States of America; United States Environmental Protection Agency. TEXAS EASTERN TRANSMISSION CORPORATION v. FIDELITY AND CASUALTY COMPANY OF NEW YORK; Associated Electric & Gas Insurance Services, Ltd.; Aetna Casualty and Surety Company; American Home Assurance Company, a/k/a American Home Insurance Company; Boston Old Colony Insurance Company; Cigna Insurance Company; Continental Casualty Company; Employers Mutual Casualty Company; First State Insurance Company; Highlands Insurance Company; The Home Insurance Company; The Insurance Company of North America; Insurance Company of the State of Pennsylvania; International Insurance Company; Lexington Insurance Company; Midland Insurance Company; National Surety Corporation; Prudential Reinsurance Company; Ranger Insurance Company; Republic Insurance Company; Stonewall Insurance Company; United States Fire Insurance Company; Certain Underwriters at Lloyd's, London and Certain London Market Insurance Companies Texas Eastern Transmission Corporation, Appellant.

United States Court of Appeals, Third Circuit.

Decided January 10, 1994.


Attorney(s) appearing for the Case

Peter J. Nickles (argued), Coleman S. Hicks, Covington & Burling, Washington, DC, Charles Alan Wright, Austin, TX, for appellant Texas Eastern Transmission Corporation.

Leonard L. Rivkin, John L. Rivkin, Erica B. Garay, Rivkin, Radler & Kremer, Uniondale, NY, John C. Sullivan, Manta & Welge, Philadelphia, PA, for appellees Associated Elec. & Gas Insurance Services, Ltd. and National Surety Corporation.

John Mattioni, Mattioni, Mattioni & Mattioni, Philadelphia, PA, Margaret H. Warner, Lawrence E. Carr, Jr., Peter K. Tompa, William J. Carter, Carr, Goodson & Lee, Washington, DC, for appellees Fidelity & Casualty Company of New York and Boston Old Colony Insurance Company.

Richard M. Shusterman, Regina B. Mapes, White & Williams, Philadelphia, PA, for appellee Insurance Company of North America

Edward Zampino, Victor C. Harwood, III, Brian J. Coyle, Harwood Lloyd, Hackensack, NJ, Edward M. Dunham, Jr., Miller, Dunham, Doering & Munson, Philadelphia, PA, for appellee Aetna Casualty & Surety Company.

Marjorie H. Mintzer, Robin S. Einbinder, Sheft & Sheft, New York, NY, Mitchell S. Pinsly, Margolis, Edelstein, Scherlis, Sarowitz & Kraemer, Philadelphia, PA, for appellees American Home Assurance Company, Highland Insurance Group, Insurance Company of the State of Pennsylvania, Lexington Insurance Company, Ranger Insurance Company, Republic Insurance Company, and Stonewall Underwriters, Inc.

Stephen Sonderby, Jody Pucel, Haskell & Perrin, Chicago, IL, for appellee Continental Casualty Company.

Ignatius J. Melito, Barry S. Bendetowies, Siff, Rosen, & Parker, P.C., New York, NY, for appellee First State Insurance Company.

David Richman, Colleen Connelly, Pepper, Hamilton & Scheetz, Philadelphia, PA, for appellee Home Insurance Company.

Kevin E. Wolff, Christopher L. Musmanno, Lorraine M. Armenti, McElroy, Deutsch & Mulvaney, Morristown, NJ, Thomas C. DeLorenzo, Marshall, Dennehey, Warner, Coleman & Goggin, Philadelphia, PA, for appellees International Insurance Company and United States Fire Insurance Company.

Michael J. Merlo, Karen L. Douglas, Michael R. Gregg, Merlo, Chapello & Douglas, Ltd., Chicago, IL, for appellee Prudential Reinsurance Company.

Lise Luborsky, Joseph M. Hankins, Britt, Hankins, Schaible & Moughan, Philadelphia, PA, for appellee Pennsylvania Insurance Guaranty Association.

Wayne Partenheimer, Law Offices of David L. Rohde, Philadelphia, PA, K. Thomas Shahriari, Mitchell A. Stearn, Gilberg & Kurent, Washington, DC for appellee National Surety Corporation.

Mary Ann D'Amato (argued), Robert M. Flannery, Mendes & Mount, New York, NY, for appellee Certain London Market Insurance Companies and Insurance Company of Ireland.

Dan Morales, Atty. Gen., Esther L. Hajdar, Deputy Appellate Coordinator, Office of the Atty. Gen. of Texas, Austin, TX, for amicus appellant State of Texas.

Thomas W. Brunner, Robert B. Bell, Nancy J. Lemay, Wiley, Rein & Fielding, Washington, DC, for amicus appellee Insurance Environmental Litigation Association.

Before: MANSMANN, ALITO and ALDISERT, Circuit Judges.


OPINION OF THE COURT

MANSMANN, Circuit Judge.

Preliminary Note

Three cases filed in three courts were consolidated for trial in the district court from whose combined judgments these appeals have been taken at No. 92-1638. This opinion addresses only one facet of these cases — the liability of Texas Eastern Transmission Corp. as adjudicated by the district court in Fidelity & Casualty Co. of New York v. The Texas Eastern Transmission...

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