ROHM AND HAAS CO. v. CONTINENTAL CAS. CO.


732 A.2d 1236 (1999)

ROHM AND HAAS COMPANY and Rohm and Haas Delaware Valley, Inc. and Pennsylvania Department of Environmental Resources, Appellees, v. CONTINENTAL CASUALTY COMPANY; International Insurance Company; Aetna Casualty & Surety Company; AIU Insurance Company; Allianz Underwriters Insurance Company; Allstate Insurance Company (As Successor to Northbrook Excess and Surplus Company, formerly known as Northbrook Insurance Company Casualty Company of Reading, Pa.); American Home Assurance Company; American Insurance Company; American Reinsurance Company; American Universal Insurance Company; California Union Insurance Company; Central National Insurance Company of Omaha; Columbia Casualty Company; The Employers Liability Assurance Corporation, Limited Employers Commercial Union Insurance Company of America; Federal Insurance Company; Fireman's Fund Insurance Company; First State Insurance Company; General Re-Insurance Corporation; Gibraltar Casualty Company; Granite State Insurance Company; Harbor Insurance Company; The Home Insurance Company; Insurance Company of North America; Insurance Company of the State of Pennsylvania; Interstate Fire & Casualty Company; Lexington Insurance Company; Lumbermens Mutual Casualty Company; Midland Insurance Company; Mission National Insurance Company; Mutual Fire, Marine & Inland Insurance Company; National Union Fire Insurance Company of Pittsburgh, PA; New Hampshire Insurance Company; Northbrook Excess Surplus Insurance Company, formerly known as Northbrook Insurance Company; North Star Re-Insurance Corporation; Old Republic Insurance Company; The Pennsylvania Insurance Guaranty Association; Prudential Re-Insurance Company; Puritan Insurance Company; Stonewall Insurance Company; Transit Casualty Company; The Traveler's Indemnity Company; Certain Underwriters at Lloyd's of London (including Syndicate Nos. 015, 016, 023, 033, 035, 036, 049, 053, 056, 057, 059, 060, 064, 065, 069, 079, 086, 088, 090, 099, 109, 126, 130, 151, 164, 169, 173, 174, 175, 179, 183, 188, 190, 193, 199, 204, 205, 208, 210, 211, 212, 214, 219, 231, 235, 238, 241, 250, 263, 276, 278, 279, 300, 301, 311, 316, 317, 322, 342, 346, 347, 356, 360, 365, 371, 373, 383, 404, 405, 408, 417, 425, 427, 431, 433, 470, 471, 472, 475, 476, 479, 484, 496, 499, 506, 507, 510, 518, 538, 539, 553, 555, 556, 558, 567, 568, 576, 581, 583, 596, 604, 610, 618, 620, 629, 634, 646, 650, 651, 652, 653, 661, 668, 674, 677, 679, 694, 701, 727, 729, 751, 755, 763, 768, 772, 773, 783, 793, 795, 796, 797, 799, 819, 838, 846, 849, 851, 867, 870, 884, 896, 899, 909, 918, 924, 935, 943, 947, 948, 960, 964, 987, 989, 990, 998) and certain London Market Companies (including) Accident & Casualty Insurance Company; Agrippina Versicherungs A.G.; Alba General Insurance Company Ltd.; Allianz Versicherungs Aktiengesellschaft; Amsterdam-London Verzekering MIJ N.V.; Anglo-French Insurance Company Ltd.; Argonaut Northwest Insurance Company; Assicurazioni Generalai S.P.A. (U.K. Branch); Baloise Fire Insurance Company; Bellefonte Insurance Company (U.K.) Ltd.; Bellefonte Re-Insurance Company (U.K.) Ltd.; The Bermuda Fire & Marine Insurance Company Ltd.; British & Overseas Insurance Company Ltd.; The British Aviation Insurance Company Ltd.; British National Insurance Company Ltd.; Brittany Insurance Company Ltd.; Casualty, Fire and Accident Underwriters; Chemical Insurance Company Ltd.; CNA International Reinsurance Company Ltd.; A.G. de 1824 Companie Belges D'Assurances Generales; Compagnie D'Assurances Maritimes Aeriennes et Terrestres; Assurances Generales Belges (1830); Compagnie Europeene D'assurances Industrielles S.A.; Compania Agricola de Seguros, Bogota, Colombia; Compania Agricola de Argentina de Seguros; Delta Lloyd Non Life Insurance; Delta Lloyd Schadeverzerkering N.V.; Dominion Insurance Company Ltd.; Dominion Insurance Company on behalf of Anglo Saxon Insurance Association Ltd.; Dominion Insurance Company on behalf of British Merchants Insurance Company Ltd.; Dominion Insurance Company on behalf of London & Edinburgh Insurance Company Ltd.; Dominion Insurance Company on Behalf Royal Scottish Insurance Company; Dominion Insurance Company on behalf of Trent Insurance Company Ltd.; Dominion Insurance Company on behalf of Vanguard Insurance Company Ltd.; Dominion Insurance Company on behalf of World Marine and General Insurance Corporation Ltd.; Drake Insurance Company Ltd.; Eisen und Stahl Ruckversicherungs A.G.; English & American Insurance Company Ltd.; Eurinco Allgemeine Versicherungs - A.G.; European General Reinsurance Company of Zurich; Europeesche Goederen - En Reisbagage Verzekering Maatschappij N.V.; Excess Insurance Company Ltd.; FM Insurance Company Ltd.; Fidelidade Grupo Segurador; Folksam International Insurance Company (U.K.) Ltd.; Gresham Insurance Society Ltd.; Groupe Josi Reinsurance Company S.A.; Guildhall Insurance Company Ltd.; Hafez Insurance Company, Tehran, Iran; Haftpflichtverband Der Deutschen Industrie V.A.G.; Helvetia Accident Swiss Insurance Company; Hull Underwriters Association; Insco Ltd.; Interlloyd Verzekering MIJ N.V.; The Israel Reinsurance Company Ltd.; Italia Assicurazioni S.P.A.; London & Edinburgh General Insurance Company; The London and Overseas Insurance Company PLC; The Mercantile and General Reinsurance Company PLC; Minster Insurance Company Ltd.; National Casualty Company of America Ltd.; New Hampshire Insurance Company; New London Reinsurance Company Ltd.; Nissan Fire & Marine Insurance Company Ltd.; Nisshin Fire & Marine Insurance Company Ltd.; North Atlantic Insurance Company Ltd.; The Orion Insurance Company PLC; Pacific & General Insurance Company Ltd.; La Preservatrice C.A. D'Assurances A.I.R.D.; Reaseguradora Nacional de Venezuela Compania Anonima; Rheinland Versicherungs - A.G.; River Thames Insurance Company Ltd.; N.V. Rotterdamse Assurantiekas; Royale Belges S.A. Assurances; Sovereign Marine & General Insurance Company Ltd.; Sphere Insurance Company Ltd.; Sphere Drake Insurance Public Limited Company; St. Helens Insurance Company Ltd.; St. Katherine Insurance Company PLC; Stronghold Insurance Company Ltd.; The Sumitomo Marine & Fire Insurance Company (Europe) Ltd.; Sumitomo Marine & Fire Insurance Company Ltd.; Swiss National Insurance Company Ltd.; Swiss Union General Insurance Company Ltd.; Turegum Insurance Company; Unionamerica Insurance Company Ltd.; Union Atlantique de Reassurances; Unione Italia di Riassicurazione; United Standard Insurance Company Ltd.; The Victory Insurance Company Limited; Winterthur Swiss Insurance Company; World Auxiliary Insurance Corporation Ltd.; The Yasuda Fire & Marine Insurance Company (of Europe) Ltd.; Zurich International Limited c/o Mendes and Mount. Three Park Avenue, New York, N.Y. 10016-5902 and A. Carole Whitmoyer and Mike Segal as Co-Personal Representatives of the Estate of Clarence W. Whitmoyer c/o Broad and Cassle. 175 N.W. 1St Ave, Suite 2000, Miami, Fl 33128; Smithkline Beecham, Inc; Edith M. Grumbine, Appellants. Appeal of The Home Insurance Company. Insurance Environmental Litigation Association, Bethlehem Steel Corp., Cabot Corp., Coltec Industries Inc., Crown Cork & Seal Co. Inc., Gould Electronics Inc., Peco Energy Co., PPG Industries, Sun Co. Inc., Unisource Worldwide Inc., and Unisys Corp., United Policy Holders. Rohm and Haas Company and Rohm and Haas Delaware Valley, Inc. and Pennsylvania Department of Environmental Resources, Appellees, v. Continental Casualty Company; International Insurance Company; Aetna Casualty & Surety Company; AIU Insurance Company; Allianz Underwriters Insurance Company; Allstate Insurance Company (as Successor to Northbrook Excess and Surplus Company, formerly known as Northbrook Insurance Company Casualty Company of Reading, Pa.); American Home Assurance Company; American Insurance Company; American Reinsurance Company; American Universal Insurance Company; California Union Insurance Company; Central National Insurance Company of Omaha; Columbia Casualty Company; The Employers Liability Assurance Corporation, Limited Employers Commercial Union Insurance Company of America; Federal Insurance Company; Fireman's Fund Insurance Company; First State Insurance Company; General Re-Insurance Corporation; Gibraltar Casualty Company; Granite State Insurance Company; Harbor Insurance Company; The Home Insurance Company; Insurance Company of North America; Insurance Company of the State of Pennsylvania; Interstate Fire & Casualty Company; Lexington Insurance Company; Lumbermens Mutual Casualty Company; Midland Insurance Company; Mission National Insurance Company; Mutual Fire, Marine & Inland Insurance Company; National Union Fire Insurance Company of Pittsburgh, PA; New Hampshire Insurance Company; Northbrook Excess Surplus Insurance Company, formerly known as Northbrook Insurance Company; North Star Re-Insurance Corporation; Old Republic Insurance Company; The Pennsylvania Insurance Guaranty Association; Prudential Re-Insurance Company; Puritan Insurance Company; Stonewall Insurance Company; Transit Casualty Company; The Traveler's Indemnity Company; Certain Underwriters at Lloyd's of London (including Syndicate Nos. 015, 016, 023, 033, 035, 036, 049, 053, 056, 057, 059, 060, 064, 065, 069, 079, 086, 088, 090, 109, 126, 130, 151, 164, 169, 173, 174, 175, 179, 183, 188, 190, 193, 199, 204, 205, 208, 210, 211, 212, 214, 219, 231, 235, 238, 241, 250, 263, 276, 278, 279, 300, 301, 311, 316, 317, 322, 342, 346, 347, 356, 360, 365, 371, 373, 383, 404, 405, 408, 417, 425, 427, 431, 433, 470, 471, 472, 475, 476, 479, 484, 496, 499, 506, 507, 510, 518, 538, 539, 553, 555, 556, 557, 558, 567, 568, 576, 581, 583, 596, 604, 610, 618, 620, 629, 634, 646, 650, 651, 652, 653, 661, 668, 674, 677, 679, 694, 701, 727, 729, 751, 755, 763, 768, 772, 773, 783, 793, 795, 796, 797, 799, 819, 838, 846, 849, 851, 867, 870, 884, 896, 899, 909, 918, 924, 935, 943, 947, 948, 960, 964, 987, 989, 990, 998) and certain London Market Companies (including) Accident & Casualty Insurance Company; Agrippina Versicherungs A.G.; Alba General Insurance Company Ltd.; Allianz Versicherungs Aktiengesellschaft; Amsterdam-london Verzekering MIJ N.V.; Anglo-French Insurance Company Ltd.; Argonaut Northwest Insurance Company; Assicurazioni Generalai S.P.A. (U.K. Branch); Baloise Fire Insurance Company; Bellefonte Insurance Company (U.K.) Ltd.; Bellefonte Re-Insurance Company (U.K.) Ltd.; The Bermuda Fire & Marine Insurance Company Ltd.; British & Overseas Insurance Company Ltd.; The British Aviation Insurance Company Ltd.; British National Insurance Company Ltd.; Brittany Insurance Company Ltd.; Casualty, Fire and Accident Underwriters; Chemical Insurance Company Ltd.; CNA International Reinsurance Company Ltd.; A.G. de 1824 Companie Belges D'Assurances Generales; Compagnie D'Assurances Maritimes Aeriennes et Terrestres; Assurances Generales Belges (1830); Compagnie Europeene D'Assurances Industrielles S.A.; Compania Agricola de Seguros, Bogota, Colombia; Compania Agricola de Argentina de Seguros; Delta Lloyd Non Life Insurance; Delta Lloyd Schadeverzerkering N.V.; Dominion Insurance Company Ltd.; Dominion Insurance Company on behalf of Anglo Saxon Insurance Association Ltd.; Dominion Insurance Company on behalf of British Merchants Insurance Company Ltd.; Dominion Insurance Company on behalf of London & Edinburgh Insurance Company Ltd.; Dominion Insurance Company on behalf of Royal Scottish Insurance Company; Dominion Insurance Company on behalf of Trent Insurance Company Ltd.; Dominion Insurance Company on behalf of Vanguard Insurance Company Ltd.; Dominion Insurance Company on behalf of World Marine and General Insurance Corporation Ltd.; Drake Insurance Company Ltd.; Eisen und Stahl Ruckversicherungs A.G.; English & American Insurance Company Ltd.; Eurinco Allgemeine Versicherungs— A.G.; European General Reinsurance Company of Zurich; Europeesche Goederen—En Reisbagage Verzekering Maatschappij N.V.; Excess Insurance Company Ltd.; FM Insurance Company Ltd.; Fidelidade Grupo Segurador; Folksam International Insurance Company (U.K.) Ltd.; Gresham Insurance Society Ltd.; Groupe Josi Reinsurance Company S.A.; Guildhall Insurance Company Ltd.; Hafez Insurance Company, Tehran, Iran; Haftpflichtverband Der Deutschen Industrie V.A.G.; Helvetia Accident Swiss Insurance Company; Hull Underwriters Association; Insco Ltd.; Interlloyd Verzekering MIJ N.V.; The Israel Reinsurance Company Ltd.; Italia Assicurazioni S.P.A.; London & Edinburgh General Insurance Company; The London and Overseas Insurance Company PLC; The Mercantile and General Reinsurance Company PLC; Minster Insurance Company Ltd.; National Casualty Company of America Ltd.; New Hampshire Insurance Company; New London Reinsurance Company Ltd.; Nissan Fire & Marine Insurance Company Ltd.; Nisshin Fire & Marine Insurance Company Ltd.; North Atlantic Insurance Company Ltd.; The Orion Insurance Company PLC; Pacific & General Insurance Company Ltd.; La Preservatrice C.A. D'Assurances A.I.R.D.; Reaseguradora Nacional De Venezuela Compania Anonima; Rheinland Versicherungs - A.G.; River Thames Insurance Company Ltd.; N.V. Rotterdamse Assurantiekas; Royale Belges S.A. Assurances; Sovereign Marine & General Insurance Company Ltd.; Sphere Insurance Company Ltd.; Sphere Drake Insurance Public Limited Company; St. Helens Insurance Company Ltd.; St. Katherine Insurance Company PLC; Stronghold Insurance Company Ltd.; The Sumitomo Marine & Fire Insurance Company (Europe) Ltd.; Sumitomo Marine & Fire Insurance Company Ltd.; Swiss National Insurance Company Ltd.; Swiss Union General Insurance Company Ltd.; Turegum Insurance Company; Unionamerica Insurance Company Ltd.; Union Atlantique de Reassurances; Unione Italia di Riassicurazione; United Standard Insurance Company Ltd.; The Victory Insurance Company Limited; Winterthur Swiss Insurance Company; World Auxiliary Insurance Corporation Ltd.; The Yasuda Fire & Marine Insurance Company (of Europe) Ltd.; Zurich International Limited c/o Mendes and Mount. Three Park Avenue, New York, N.Y. 10016-5902 and A. Carole Whitmoyer and Mike Segal as Co-Personal Representatives of the Estate of Clarence W. Whitmoyer c/o Broad and Cassle. 175 N.W. 1st Ave, Suite 2000, Miami, Fl 33128; Smithkline Beecham, Inc; Edith M. Grumbine, Appellants. Appeal of Certain Underwriters at Lloyd's London, and Certain London Market Insurance Companies (Hereinafter "Plaisted and Companies"). Insurance Environmental Litigation Association, Bethlehem Steel Corp., Cabot Corp., Coltec Industries Inc., Crown Cork & Seal Co. Inc., Gould Electronics Inc., Peco Energy Co., PPG Industries, Sun Co. Inc., Unisource Worldwide Inc., and Unisys Corp., United Policy Holders.

Superior Court of Pennsylvania.

Filed May 6, 1999.

Reargument Denied July 30, 1999.


Attorney(s) appearing for the Case

Nancy J. Gellman and Robert N. Feltoon, Philadelphia, for Rohm and Haas Co. and Haas Delaware Valley, Inc., appellees.

Jerome J. Shestack, Philadelphia, for Certain Underwriters at Lloyd's of London.

William J. Brennan, III, Princeton, NJ, for The Home Ins. Co.

Before CAVANAUGH, TAMILIA and HESTER, JJ.


CAVANAUGH, J.:

¶ 1 This appeal involves insurance coverage for the clean-up of a serious environmental pollution problem in the soil, groundwater and surface water upon and in the area of a manufacturing site formerly owned and operated by appellees, Rohm and Haas Company and Rohm and Haas, Delaware Valley, Inc. (hereinafter Rohm & Haas). Rohm & Haas' strict liability under federal law for the environmental...

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