AM. HOME PRODUCTS v. ADRIATIC INS.


286 N.J. Super. 24 (1995)

668 A.2d 67

AMERICAN HOME PRODUCTS CORPORATION; AMERICAN HOME FOODS, INC.; AYERST LABORATORIES, INC.; AYERST-WYETH PHARMACEUTICALS, INC.; SHERWOOD MEDICAL COMPANY; AND WYETH LABORATORIES, INC., PLAINTIFFS/RESPONDENTS v. ADRIATIC INSURANCE COMPANY (ALSO KNOWN AS RIUNIONE ADRIATICA DI SICURTA); THE AETNA CASUALTY & SURETY COMPANY; AFFILIATED FM INSURANCE COMPANY; AIU INSURANCE COMPANY; ALLIANZ UNDERWRITERS INSURANCE COMPANY; ALL-STATE INSURANCE COMPANY (AS SUCCESSOR TO NORTHBROOK EXCESS AND SURPLUS INSURANCE COMPANY AND NORTHBROOK INSURANCE COMPANY); AMERICAN HOME ASSURANCE COMPANY; AMERICAN REINSURANCE COMPANY; BIRMINGHAM FIRE INSURANCE COMPANY OF PENNSYLVANIA; CALIFORNIA UNION INSURANCE COMPANY; CENTRAL NATIONAL INSURANCE COMPANY OF OMAHA; CITY INSURANCE COMPANY; CONTINENTAL CASUALTY COMPANY; THE CONTINENTAL INSURANCE COMPANY; FIRST STATE INSURANCE COMPANY; FORUM INSURANCE COMPANY; GENERAL REINSURANCE CORPORATION; GOVERNMENT EMPLOYEES INSURANCE COMPANY; GRANITE STATE INSURANCE COMPANY; HARTFORD ACCIDENT AND INDEMNITY COMPANY; THE HOME INSURANCE COMPANY; INSURANCE COMPANY OF NORTH AMERICA; INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA; INTERNATIONAL INSURANCE COMPANY; INTERNATIONAL SURPLUS LINES INSURANCE COMPANY; LEXINGTON INSURANCE COMPANY; LIBERTY MUTUAL INSURANCE COMPANY; LONDON GUARANTEE AND ACCIDENT COMPANY OF NEW YORK; NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA.; NEW ENGLAND INSURANCE COMPANY; NORTH STAR REINSURANCE CORPORATION; PACIFIC INSURANCE COMPANY; PROTECTIVE NATIONAL INSURANCE COMPANY OF OMAHA; ROYAL INDEMNITY COMPANY; SAFETY MUTUAL CASUALTY CORPORATION; UNIGARD SECURITY INSURANCE COMPANY; UNIONE ITALIANA REINSURANCE COMPANY OF AMERICA; UNITED STATES FIRE INSURANCE COMPANY; CERTAIN UNDERWRITERS AT LLOYD'S, LONDON AND LONDON MARKET INSURANCE COMPANIES; ALTE LEIPZIGER VERSICHERUNG A.G.; COLONIA INSURANCE COMPANY (ALSO KNOWN AS COLONIA VERSICHERUNG A.G.); GOTHAER VERSICHERUNGSBANK VVAG; AND HAFTPFLICHTVERBANK DER DEUTSCHEN INDUSTRIES V.A.G., DEFENDANTS/APPELLANTS, AMERICAN CENTENNIAL INSURANCE COMPANY; ATLANTA INTERNATIONAL INSURANCE COMPANY (AS SUCCESSOR TO DRAKE INSURANCE COMPANY OF NEW YORK); COMMERCIAL UNION INSURANCE COMPANY (FORMERLY KNOWN AS EMPLOYERS' COMMERCIAL UNION INSURANCE COMPANY OF AMERICA); EMPLOYERS' LIABILITY ASSURANCE CORPORATION, LIMITED (DOING BUSINESS AS COMMERCIAL UNION INSURANCE COMPANY); FEDERAL INSURANCE COMPANY FIREMAN'S FUND INSURANCE COMPANY; GIBRALTAR CASUALTY COMPANY; LUMBERMEN MUTUAL CASUALTY COMPANY; NATIONAL CASUALTY COMPANY; NEW ENGLAND REINSURANCE CORPORATION; PRUDENTIAL REINSURANCE COMPANY; PURITAN INSURANCE COMPANY (FORMERLY KNOWN AS MANHATTAN FIRE AND MARINE INSURANCE COMPANY); REPUBLIC INSURANCE COMPANY; TRANSAMERICA INSURANCE COMPANY; THE TRAVELERS INDEMNITY COMPANY; LE ASSICURAZIONI D'ITALIA; ASSURANCES GENERALES DE FRANCE I.A.R.T.; BERMUDA FIRE AND MARINE INSURANCE COMPANY, LTD.; LE CENTRE MUTUEL; CHEMICAL INSURANCE COMPANY; COMPAGNIE NOUVELLE D'ASSURANCES; EISEN UND STAHL; EXCESS INSURANCE COMPANY, LTD.; LA FONCIERE COMPAGNIE D'ASSURANCES ET DE REASSURANCES; GERLING-KONZERN ALLEGEMEINE VERSICHERUNGS-AG; GROUPE D'ASSURANCES MUTUELLES; INSCO, LIMITED; MENTOR INSURANCE LIMITED, UK; NISSHIN FIRE & MARINE; NORTHUMBERLAND GENERAL INSURANCE COMPANY; LA PRESERVATRICE; ROYALE BELGE I.R.S.A. D'ASSURANCE; LE SECOURS; SOCIETE LILLOISE D'ASSURANCE; SWISS REINSURANCE COMPANY; L'UNION DES ASSURANCES DE PARIS I.S.R.D.; ZURICH INTERNATIONAL LTD., DEFENDANTS.

Superior Court of New Jersey, Appellate Division.

Decided December 11, 1995.


Attorney(s) appearing for the Case

Gary Hoppe argued the cause for appellants (Manta & Welge, attorneys for Liberty Mutual Ins. Co.; Stephen F. Brock and Michael E. Twomey of the firm Aron, Twomey, Hoppe & Galanty, of counsel).

William B. McGuire argued the cause for appellants (Tompkins, McGuire & Wachenfeld, attorneys for appellants London Market Insurers, Royale Belge Societe Anonym, Excess Ins. Co., and the Britamco Insurers; Mr. McGuire and William H. Trousdale, on the brief).

Daniel J. Thomasch argued the cause for respondents (Pitney, Hardin, Kipp & Szuch, attorneys; Donovan, Leisure, Newton & Irvine, and William J. Ruane, of counsel; Donald W. Kiel, on the brief).

Mound, Cotton & Wollan, attorneys for appellants AIU Insurance Co., American Home Assurance Co., Birmingham Fire Ins. Co. of Pa., Granite State Ins. Co., The Ins. Co. of the State of Pa., Lexington Ins. Co., and National Union Fire Ins. Co. of Pittsburgh (Robert N. Kelly of the firm Jackson & Campbell, and Jeffrey Weinstein, of counsel).

Thurm & Heller, attorneys for appellant Forum Ins. Co. (Steven A. Stadtmauer and Margaret A. Arnold of the firm Vedder, Price, Kaufmann & Kammholz, of counsel).

Bumgardner, Hardin & Ellis, attorneys for appellants Pacific Ins. Co., Continental Ins. Co., London Guarantee and Accident Co. of N.Y. (Janet L. Poletto and Michelle L. Melin of the firm Carr, Goodson & Lee, of counsel).

Siff Rosen, attorneys for appellants Hartford Accident & Indemnity Co., New England Ins. Co., Royal Indemnity Co. and First State Ins. Co. (Susan M. Chesler, of counsel).

Ford, Marrin, Espositio, Witmeyer & Gleser, attorneys for appellant Continental Casualty Co. (Charles Booth and Justin N. Kinney, of counsel).

Rivkin, Radler & Kramer, attorneys for appellant Allstate Ins. Co. (Joni Mason, of counsel).

Connell, Foley & Geiser, attorneys for appellant Aetna Casualty & Surety Co. (Frank A. Lattal, Richard Doran of the firm Gibson, Dunn & Crutcher, and Jodi Newhouse of the firm Gibson, Dunn & Crutcher, of counsel).

Dwyer, Connell & Lisbona, attorneys for appellant Unigard Security Ins. Co. (Kenneth F. Mullaney, Jr., Aidan M. McCormack of the firm Newman & Harrington and James J. Duane, III, of the firm Taylor, Anderson & Travers, of counsel).

Skadden, Arps, Slate, Meagher & Flom, attorneys for appellants General Reinsurance Corp. and North Star Reinsurance Corp. (Mark Hoerrner, of counsel).

Golden, Rothschild, Spagnola & DiFazio, attorneys for appellants The Home Ins. Co. and City Ins. Co. (William E. McGrath and Ann Bickford of the firm Skadden, Arps, Slate, Meagher & Flom, of counsel).

Sheft & Sheft, attorneys for appellants Adriatic Ins. Co., Allianz Underwriters Ins. Co., American Reinsurance Co., Protective National Ins. Co. of Omaha, and Unione Italiana Reinsurance Co. of America (Gerald A. Greenberger, of counsel).

LeBoeuf, Lamb, Greene & MacRae, attorneys for appellants Government Employee Ins. Co. (Lynn Menschenfreund, Elizabeth A. Sandza, and Rocco N. Covino, of counsel).

O'Malvany & Myers, attorneys for appellants Insurance Co. of North America; CIGNA, Central National Ins. Co. of Omaha (Karen Mendalka Hoerrner and Mark D. Plevin of the firm Cromwell & Moring, of counsel).

McElroy, Deutsch & Mulvaney, attorneys for International Ins. Co., International Surplus Lines Ins. Co., and United States Fire Ins. Co. (Kevin M. Haas, of counsel).

Herten, Burstein, Sheridan, Cevasco, Bottinelli & Litt, attorneys for Alte Leipziger Versicherung, A.G., Colonia Ins. Co., Gothaer Versicherungsbank, Haftpflichtverbank der Deutschen Industries V.A.G., Colonia Versicherung A.G. and Eisen & Stahl (Kevin P. Kelly, of counsel).

Before Judges KING, LANDAU and KLEINER.


The opinion of the court was delivered by KING, P.J.A.D.

We granted leave to appeal, R. 2:2-3(b); R. 2:5-6(a), on June 5, 1995 to review the order of the Law Division which declined to dismiss or stay this insurance coverage action on comity grounds, in deference to an earlier action pending in New York's state court. We conclude that the plaintiffs have shown sufficient "special equities" to justify retention...

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