CON ED v. ALLSTATE INS. CO.


98 N.Y.2d 208 (2002)

774 N.E.2d 687

746 N.Y.S.2d 622

CONSOLIDATED EDISON COMPANY OF NEW YORK, INC., Appellant, v. ALLSTATE INSURANCE COMPANY et al., Respondents. (And a Third-Party Action.) CONSOLIDATED EDISON COMPANY OF NEW YORK, INC., Appellant, v. CERTAIN UNDERWRITERS OF LLOYD'S, LONDON, et al., Respondents, et al., Defendants. (And a Third-Party Action.)

Court of Appeals of the State of New York.

Decided May 2, 2002.


Attorney(s) appearing for the Case

Dickstein, Shapiro, Morin & Oshinsky LLP, New York City (David L. Elkind, Jerold Oshinsky and Joseph F. Fields of counsel), and Richard W. Babinecz for appellant.

Stroock & Stroock & Lavan LLP, New York City (Robert Lewin, James A. Shifren, Kevin J. Curnin and Joseph E. Strauss of counsel), for Travelers Indemnity Company, respondent.

Mendes & Mount, LLP, New York City (John G. McAndrews, Dean J. Vigliano, Robert P. Firriolo and William P. Lalor of counsel), for London Market Insurers, respondent.

Luce, Forward, Hamilton & Scripps LLP, New York City (Thomas R. Newman, Mitchell L. Lathrop, Huhnsik Chung and Christine Megna of counsel), for St. Paul Fire & Marine Insurance Company, respondent.

Wilson, Elser, Moskowitz, Edelman & Dicker LLP, New York City (Richard E. Lerner and Thomas W. Hyland of counsel), for Home Insurance Company, respondent.

Melito & Adolfsen P.C., New York City (Robert F. Walsh and Jennifer A. Schaefer of counsel), for New England Insurance Company and another, respondents.

Carl F. Patka, Albany, and Lawrence G. Malone for Public Service Commission of the State of New York, amicus curiae.

McCarter & English LLP, Newark, New Jersey (Gita F. Rothschild, R. Nicholas Gimbel and Alissa Pyrich of counsel), and Anderson Kill & Olick, P.C., New York City (R. Mark Keenan and Mark Grabowski of counsel), for United Policyholders, amicus curiae.

Vedder, Price, Kaufman & Kammholz, New York City (John H. Eickemeyer of counsel), and Wiley Rein & Fielding LLP, Washington, D.C. (Laura A. Foggan, Dale E. Hausman and Kimberly M. Melvin of counsel), for Insurance Environmental Litigation Association, amicus curiae.

Judges SMITH, LEVINE, CIPARICK, WESLEY, ROSENBLATT and GRAFFEO concur.


OPINION OF THE COURT

Chief Judge KAYE.

Central to this appeal by an insured against its insurers are two important law questions: first, whether the insured (or the insurers) should have the burden of proving that the damage was (or was not) the result of an "accident" or "occurrence" within the meaning of the policies, and second, how any liability should be allocated. This case presents something...

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