STATE v. HYDRITE CHEMICAL CO.

Nos. 00-3344, 01-0580.

257 Wis.2d 554 (2002)

2002 WI App 222

652 N.W.2d 828

STATE of Wisconsin, Plaintiff, v. HYDRITE CHEMICAL COMPANY a/k/a Avganic Industries, Inc., Defendant-Third-Party Plaintiff-Appellant-Cross-Respondent, v. TRAVELERS CASUALTY & SURETY COMPANY f/k/a Aetna Casualty & Surety Company, American Casualty Company of Reading, PA, Chicago Insurance Company, Continental Casualty Company, First State Insurance Company and First State Underwriters Agency of New England Reinsurance Corp. a/k/a New England Reinsurance Corp., Granite State Insurance Company, Great American Surplus Lines Ins. Co. a/k/a American Empire Surplus Lines Ins. Co., International Surplus Alliance Insurance Co. a/k/a International Insurance Co., Certain Underwriters at Lloyds of London a/k/a Certain London Insurers, and Affiliated FM Insurance Company, Third-Party-Defendants, AMERICAN MOTORISTS INSURANCE COMPANY, Home Indemnity Company and Home Insurance Company, Northbrook Excess & Surplus Insurance Company, as predecessor to Allstate Insurance Company, and United States Fire Insurance Co., Third-Party Defendants-Respondents-Cross-Appellants, INTERSTATE FIRE AND CASUALTY COMPANY, Fourth-Party Plaintiff, v. MARYLAND CASUALTY COMPANY, Fourth-Party Defendant. STATE of Wisconsin, Plaintiff, v. HYDRITE CHEMICAL COMPANY a/k/a Avganic Industries, Inc., Defendant-Third-Party Plaintiff-Appellant, v. TRAVELERS CASUALTY & SURETY COMPANY f/k/a Aetna Casualty & Surety Company, American Casualty Company of Reading, PA, Chicago Insurance Company, Continental Casualty Company, First State Insurance Company and First State Underwriters Agency of New England Reinsurance Corp. a/k/a New England Reinsurance Corp., Granite State Insurance Company, Great American Surplus Lines Ins. Co. a/k/a American Empire Surplus Lines Ins. Co., International Surplus Alliance Insurance Co. a/k/a International Insurance Co., Certain Underwriters at Lloyds of London a/k/a Certain London Insurers, and Affiliated FM Insurance Company, Third-Party-Defendants, AMERICAN MOTORISTS INSURANCE COMPANY, Home Indemnity Company and Home Insurance Company, Northbrook Excess & Surplus Insurance Company, as predecessor to Allstate Insurance Company, and United States Fire Insurance Co., Third-Party Defendants-Respondents, INTERSTATE FIRE AND CASUALTY COMPANY, Fourth-Party Plaintiff, v. MARYLAND CASUALTY COMPANY, Fourth-Party Defendant.

Court of Appeals of Wisconsin.

Decided August 1, 2002.


Attorney(s) appearing for the Case

On behalf of the defendant-third-party plaintiff-appellant-cross-respondent, the cause was orally argued by Gordon Giampietro and submitted on the briefs of Raymond R. Krueger, Douglas P. Dehler, and Cynthia E. Smith of Michael Best & Friedrich LLP, Milwaukee.

On behalf of the third-party defendants-respondents-cross-appellants, American Motorists Insurance Company and Northbrook Excess & Surplus Insurance Company, as predecessor to Allstate Insurance Company, the cause was orally argued by Michael W. Morrison, and submitted on the briefs of Robert S. Soderstrom, Michael W. Morrison, and Dale R. Kurth of Tressler, Soderstrom, Maloney & Priess, Chicago, IL.

On behalf of the third-party defendants-respondents-cross-appellants, Home Indemnity Company and Home Insurance Company, the cause was orally argued by Alyssa M. Campbell, and submitted on the briefs of Anthony P. Katauskas, Alyssa M. Campbell, and Mary A. Sliwinski of Williams Montgomery & John Ltd., Chicago, IL, and Richard G. Niess of Coyne, Niess, Schultz, Becker & Bauer, Madison.

On behalf of the third-party defendant-respondent-cross-appellant, United States Fire Insurance Company, the cause was orally argued by Michael Resis, and submitted on the briefs of Michael Resis and Timothy J. Fagan of O'Hagan, Smith & Amundsen, L.L.C., Chicago, IL, and Patrick J. Lubenow of O'Hagan, Smith & Amundsen, L.L.C., Milwaukee.

Before Vergeront, P.J., Deininger and Lundsten, J.J.


¶ 1. VERGERONT, P.J.

The primary issue we decide on this appeal and cross-appeal requires us to construe the same insurance policy language at issue in City of Edgerton v. General Casualty Co. of Wisconsin, 184 Wis.2d 750, 517 N.W.2d 463 (1994), in the context of a different fact situation. The issue is whether the term "damages" in the...

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