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BOARD OF REGENTS v. ROYAL INS. CO.

No. C1-93-24, C8-93-36 and C5-93-186.

517 N.W.2d 888 (1994)

BOARD OF REGENTS OF the UNIVERSITY OF MINNESOTA, et al., Petitioners, Appellants, v. ROYAL INSURANCE COMPANY OF AMERICA, Great American Insurance Company, North River Insurance Company, et al., Respondents.

Supreme Court of Minnesota.

June 17, 1994.

Attorney(s) appearing for the Case

Michael R. Seiben, Harvey N. Jones, Michael R. Storm, Seiben, Polk, LaVerdiere, Jones & Hawn, P.A., Hastings and Edward J. Westbrook, Annetta Riley, J. Anderson Berly III, Ness, Motley, Loadholt, Richardson & Poole, P.A., Charleston, SC, for appellants.

Stephen J. Foley, Foley & Mansfield, Minneapolis, for Great American Ins. Co.

Andrew Horstman, Robins, Kaplan, Miller & Ciresi, Minneapolis, for North River Ins. Co., et al.

Austin D. Ditzler, Minneapolis, for Royal Ins. Co. of America.

Laurence M. McHeffey, North River Ins. Co., Morristown, NJ, for North River Ins. Co.

Michael Berens, Kelley & Berens, PA, Minneapolis and Thomas W. Brunner, Laura A. Foggan, Carol A. Barthel, Washington, DC, for amicus curiae Ins. Environmental Litigation Assoc.

Heard, considered, and decided by the court en banc.

OPINION

SIMONETT, Justice.

Does the "pollution exclusion" in the defendant carriers' insurance policies exclude coverage for asbestos claims? We conclude in this case that it does not for the primary policies but it does for the excess policies. We reverse in part and affirm in part.

From 1969 to early 1972 the University of Minnesota installed asbestos-containing fire-proofing materials, manufactured by Asbestospray Corporation, in some of its buildings...

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