AMERICAN EMPLOYER'S v. ELF ATOCHEM


725 A.2d 1093 (1999)

157 N.J. 580

AMERICAN EMPLOYERS' INSURANCE COMPANY and Commercial Union Insurance Company (as successor to certain obligations of Employers' Surplus Line Insurance Company and Employers' Liability Assurance Corporation, Ltd.), Plaintiffs-Respondents, v. ELF ATOCHEM NORTH AMERICA, INC., Defendant-Respondent, and Pennwalt Corporation and its successors and assigns, A.C.E. Insurance Company (Bermuda) Ltd., the Aetna Casualty and Surety Company, Allianz Underwriters Insurance Company, Allstate Insurance Company, as successor to Northbrook Excess and Surplus Insurance Company, formerly Northbrook Insurance Company, American Home Assurance Company, American Re-insurance Company, Atlanta International Insurance Company, Birmingham Fire Insurance Company of Pennsylvania, California Union Insurance Company, Centennial Insurance Company, the Central National Insurance Company of Omaha, Chicago Insurance Company, Citizens Casualty Company of New York, Continental Casualty Company, the Continental Insurance Company, Employers Insurance of Wausau, a Mutual Company, Federal Insurance Company, Fireman's Fund Insurance Company, First State Insurance Company, Gibraltar Casualty Company, Granite State Insurance Company, Great American Insurance Company, the Hanover Insurance Company, the Home Insurance Company, Illinois Insurance Exchange, Insurance Company of North America, Insurance Company of the State of Pennsylvania, International Insurance Company, International Surplus Lines Insurance Company, Certain Underwriters at Lloyd's of London, London Market Insurance Companies, Lexington Insurance Company, Mutual Marine Insurance Company, National Casualty Company, National Union Fire Insurance Company of Pittsburgh, PA, New England Insurance Company, North River Insurance Company, North Star Reinsurance Corporation, Oil Casualty Insurance, Ltd., Old Republic Insurance Company, Pacific Employers Insurance Company, Pennsylvania Property and Casualty Insurance Guaranty Association, Puritan Excess and Surplus Lines Insurance Company, Royal Indemnity Company, Safety National Casualty Corporation, St. Paul Fire and Marine Insurance Co., St. Paul Surplus Lines Insurance Co., Talegen Holdings Inc. (formerly Crum and Forster, Inc.), the Travelers Indemnity Company, UNAT (a member of American International Group), Winterthur Swiss Group, X.L. Insurance Company, Ltd. (NBA Excess and Surplus Lines Bermuda, Ltd.) the Yasuda Fire & Marine Insurance Company of America, Zurich Insurance Company, and John Does One Through Two Hundred, Defendants, The New Jersey Property-Liability Insurance Guaranty Association, Defendant-Appellant. Elf Atochem North America, Inc. and Pennwalt Corporation, Third-Party Plaintiffs, v. AIU Insurance Company; American Re-Insurance Company; Birmingham Fire Insurance Company of PA; California Union Insurance Company (Succeeded by CIGNA Specialty Insurance Co.); Centennial Insurance Company; Central National Insurance Company of Omaha; Chicago Insurance Company; the Continental Corporation (as successor-in-Interest to Harbor Insurance Company); Continental Casualty Co.; Federal Insurance Company; Gibraltar Casualty Company; Great American Insurance Company; the Hanover Insurance Company; the Home Insurance Company; Insurance Company of North America; International Insurance Company; Liberty Mutual Insurance Company; National Union Fire Insurance Company of Pittsburgh, PA; New England Insurance Company; North Brook Insurance Company (succeeded by Allstate Insurance Company); Old Republic Insurance Company; Pacific Employers Insurance Company; Puritan Excess and Surplus Lines Insurance Company (as Successor-in-Interest to PURITAN Insurance Company, formerly the Manhattan Fire and Marine Insurance Company); Royal Indemnity Company; Safety National Casualty Corporation (formerly known as Safety Mutual Casualty Corporation of America); St. Paul Fire and Marine Insurance Company; St. Paul Surplus Lines Insurance Company; Talegen Holdings, Inc.; and Texas Property and Casualty Insurance Guaranty Association, Third-Party Defendants.

Supreme Court of New Jersey.

Decided March 17, 1999.


Attorney(s) appearing for the Case

Hugh P. Francis, Morristown, for defendant-appellant (Francis & O'Farrell, attorneys; Mr. Francis, and Peter A. Olsen, on the brief).

James W. Christie, III, Philadelphia, PA, for plaintiffs-respondents American Employers' Insurance Company and Commercial Union Insurance Company (Christie, Pabarue, Mortensen and Young, attorneys; Marybeth Smith Werb, on the brief).

Paul E. Breene, Newark, for defendant-respondent Elf Atochem North America, Inc. (Anderson Kill & Olick, attorneys; Mr. Breene and Ian R. Scheinmann, New York City, on the briefs).

Michael E. Goldman, Deputy Attorney General, for amicus curiae New Jersey Department of Banking and Insurance (Peter Verniero, Attorney General of New Jersey, attorney; Joseph L. Yannotti, Assistant Attorney General, of counsel; Mitchell A. Newmark, Deputy Attorney General, on the brief).

Richard R. Spencer, Jr., Florham Park, submitted a brief on behalf of amicus curiae National Conference of Insurance Guaranty Funds (Bressler, Amery & Ross, attorneys; Mr. Spencer and Jennifer E. Birmingham, on the brief).


The opinion of the Court was delivered by OHERN, J.

"In the arena of environmental insurance law, it sometimes appears that just as soon as one issue of importance is resolved, like Hydra, the many-headed serpent in Greek mythology, at least two new issues arise to replace it." General Accident Ins. Co. of America v. Department of Envtl. Protection, 143 N.J. 462, 463-64,

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