RELIANCE INS. CO. v. ARMSTRONG


292 N.J. Super. 365 (1996)

678 A.2d 1152

RELIANCE INSURANCE COMPANY, PLAINTIFF-RESPONDENT-CROSS-APPELLANT, v. ARMSTRONG WORLD INDUSTRIES, INC., DEFENDANT-APPELLANT-CROSS-RESPONDENT.

Superior Court of New Jersey, Appellate Division.

Decided July 22, 1996.


Attorney(s) appearing for the Case

Christopher Sipes (pro hac vice) of Covington & Burling, and Donald Kiel of Pitney, Hardin, Kipp & Szuch argued the cause for defendant-appellant/cross-respondent (Mark S. Herr of Cohen, Shapiro, Polisher, Shiekman and Cohen, and Robert N. Sayler, Marc S. Mayerson and Mr. Sipes of Covington & Burling, on the brief).

Charles W. Gabage and Steven Engelmyer argued the cause for plaintiff-respondent/cross-appellant (Eisenstat, Gabage & Berman, attorneys; Mr. Gabage, on the brief; Hangley, Connolly, Epstein, Chicco, Foxman & Ewing, attorneys; Steven R. Fischer, Regina A. Vogel, and Deborah Weinstein, on the brief).

Karen L. Jordan, Deputy Attorney General, argued the cause amicus curiae for State of New Jersey, Department of Environmental Protection (Deborah T. Poritz, Attorney General of New Jersey, attorney; Mary C. Jacobson, Assistant Attorney General, of counsel; Ms. Jordan, on the brief).

Laura A. Foggan (pro hac vice) of Wiley, Rein & Fielding argued the cause amicus curiae for Insurance Environmental Litigation Association (Smith, Stratton, Wise, Heher & Brennan, attorneys; Wendy L. Mager, on the brief; Wiley, Rein & Fielding, attorneys; Ms. Foggan, John E. Barry and Steven D. Silverman, of counsel).

Nielsen V. Lewis argued the cause amicus curiae for The New Jersey State League of Municipalities (Goldshore, Wolf & Lewis, attorneys; Mr. Lewis, on the brief; Stickel, Koenig & Sullivan, attorneys; Fred G. Stickel, III, of counsel and on the brief; Skey, Dumont & Matejek, attorneys for amicus curiae The New Jersey State League of Municipalities).

Cooper, Rose & English, and Kirkpatrick & Lockhart, attorneys (pro hac vice) for amici curiae WMX Technologies, Inc., and ASARCO Incorporated; Anderson, Kill, Olick & Oshinsky, attorneys for amici curiae Allied Signal, Inc., BOC Incorporated and Metex, Inc.; and Hannoch Weisman, attorneys for amici curiae London International U.S. Holdings, Inc., Princeton-Gamma-Tech, Inc. and Prospect Industries, Inc. (Jerry Fitzgerald English, Matthew L. Jacobs and Bruce H. Nielsen (pro hac vice), Elizabeth A. Sherwin, and Suzanne Q. Chamberlin, and Jordan S. Stanzler (pro hac vice), on the brief).

Before SHEBELL, STERN and NEWMAN, JJ.


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

This appeal involves the issue of comprehensive general liability ("CGL") policies of insurance providing coverage for costs of remediation of environmental pollution to groundwater beneath an insured's site, and whether the "owned property" exclusions of the policies bar coverage. We hold that the costs of remediation of groundwater pollution is covered and may not be denied under the "owned property" exclusion...

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