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DOMTAR, INC. v. NIAGARA FIRE INS. CO.

Nos. C0-95-2626, C7-95-2638 and C9-95-2673.

552 N.W.2d 738 (1996)

DOMTAR, INC., Respondent (C0-95-2626; C7-95-2638), Appellant (C9-95-2673), v. NIAGARA FIRE INSURANCE COMPANY, et al., Appellants (C7-95-2638), Respondents (C0-95-2626; C9-95-2673), Canadian General Insurance Company, et al., Respondents, Certain Underwriters at Lloyd's of London et al., Appellants (C0-95-2626), Respondents (C7-95-2638; C9-95-2673).

Court of Appeals of Minnesota.

Review Granted October 17, 1996.

Attorney(s) appearing for the Case

Douglas L. Skor, Kathleen Erickson DiGiorno, Paul C. Thissen, Briggs and Morgan, P.A., St. Paul, Paul Anton Zevnik, John L. Osborne, Zevnik, Horton, Guibord and McGovern, P.C., Washington, DC, for respondent-appellant Domtar, Inc.

Thomas A. Person, Arthur, Chapman, McDonough, Kettering & Smetak, P.A., Minneapolis, for appellants-respondents Niagara Fire Ins. Co. et al.

Larry Hanson, Chris Kabella, Moore, Costello & Hart, St. Paul, for respondents Canadian General Ins. Co. et al.

Thomas P. Kane, Kenneth H. Podpeskar, Oppenheimer Wolff & Donnellly, St. Paul, Gary W. Werterberg, Joseph A. Hinkhouse, Lord, Bissel & Brook, Chicago, IL, for appellants-respondents Lloyd's of London et al.

Charles E. Lundberg, Bassford, Lockhart, Truesdell & Briggs, P.A., Minneapolis, for amicus curiae Insurance Environmental Litigation Ass'n.

Laura A. Foggan, Elizabeth A. Eastwood, Treg A. Julander, Wiley, Rein & Fielding, Washington, DC, of counsel, for amicus curiae.

Considered and decided by KLAPHAKE, P.J., CRIPPEN and HUSPENI, JJ.

OPINION

CRIPPEN, Judge.

The trial court held that three insurers (Lloyd's of London, Continental Insurance Company, and Niagara Fire Insurance Company) were liable to indemnify Domtar, Inc. for part of an environmental loss. The court also concluded that two of the insurers (Niagara and Continental) had a liability of $1.154 million for the cost of defending the underlying action by the Minnesota Pollution Control Agency and $1.664 million for expenses in...

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