VIKING PUMP, INC. v. CENTURY INDEM. CO.

C.A. No. 1465-VCS.

2 A.3d 76 (2009)

VIKING PUMP, INC., Plaintiff, v. CENTURY INDEMNITY COMPANY, et al., Defendants. Warren Pumps LLC, Third-Party Plaintiff, v. Century Indemnity Company, et al., Third-Party Defendants. Viking Pump, Inc., Third-Party Plaintiff, v. John Crane, Inc., Houdaille Industries, Inc., Third-Party Defendants.

Court of Chancery of Delaware.

Decided: October 14, 2009.


Attorney(s) appearing for the Case

Lisa A. Schmidt, Esquire, Harry Tashjian, IV, Esquire, Richards, Layton & Finger, P.A., Wilmington, Delaware; Michael P. Foradas, Esquire, Lisa G. Esayian, Esquire, Matthew S. Buckley, Esquire, Kirkland & Ellis, LLP, Chicago, Illinois, Attorneys for Viking Pump, Inc.

John E. James, Esquire, Potter Anderson & Corroon, LLP, Wilmington, Delaware; Robin L. Cohen, Esquire, James R. Murray, Esquire, Keith McKenna, Esquire, John P. Winsbro, Esquire, Dickstein Shapiro LLP, New York, New York, Attorneys for Warren Pumps, LLC.

John S. Spadaro, Esquire, John Sheehan Spadaro, LLC, Hockessin, Delaware; Laura S. McKay, Esquire, Bruce M. Lichtcsien, Esquire, Hinkhouse Williams Walsh LLP, Chicago, Illinois, Attorneys for London Market Insurers.

Neal Levitsky, Esquire, Fox Rothschild LLP, Wilmington, Delaware; Kathleen D. Monnes, Esquire, Day Pitney LLP, Hartford, Connecticut, Attorneys for Travelers Casualty & Surety Company.

Robert M. Greenberg, Esquire, Tybout, Redfearn & Pell, Wilmington, Delaware; Amy R. Paulus, Esquire, Clausen Miller P.C., Chicago, Illinois, Attorneys for Old Republic Insurance Company.

Paul Cottrell, Esquire, Tighe & Cottrell, P.A., Wilmington, Delaware; Charles G. Carluccio, Esquire, Colliau Elenius Murphy Carluccio Keener & Morrow, Cranbury, New Jersey, Attorneys for The Continental Insurance Company, as successor by merger to The Fidelity & Casualty Company of New York.

Anthony G. Flynn, Esquire, Young Conaway Stargatt & Taylor LLP, Wilmington, Delaware; Timothy Dingilian, Esquire, Christopher Ferragamo, Esquire, Jackson & Campbell, Washington, District of Columbia, Attorneys for Granite State Insurance Company, Lexington Insurance Company and National Union Fire Insurance Company of Pittsburgh, PA.

Thaddeus J. Weaver, Esquire, Christie Pabarue Mortensen & Young PC, Wilmington, Delaware; Kevin J. O'Connor, Esquire, Peter C. Netburn, Esquire, Hermes, Netburn, O'Connor & Spearing, P.C., Boston, Massachusetts, Attorneys for OneBeacon America Insurance Company, XL Insurance America, Inc., as successor to Vanguard Insurance Company, and Republic Insurance.

James W. Semple, Esquire, Morris James LLP, Wilmington, Delaware; Karl S. Vasiloff, Esquire, Kristin Suga Heres, Esquire, Zelle Hofmann Voelbel & Mason LLP, Waltham, Massachusetts, Attorneys for Westport Insurance Corporation.

Donald M. Ransom, Esquire, Casarino Christman Shalk Ransom & Doss, P.A., Wilmington, Delaware; Brian G. Fox, Esquire, Siegal & Park, Mt. Laurel, New Jersey, Attorneys for Century Indemnity Company, as successor to CCI Insurance Company, as successor to Insurance Company of North America; Century Indemnity Company as successor to CIGNA Specialty Insurance Company (formerly known as California Union Insurance Company); Central National Insurance Company of Omaha, by and through its managing general agent Cravens, Dargan & Company, Pacific Coast; and TIG Insurance Company, as successor by merger to International Insurance Company, as successor by merger to International Surplus Lines Insurance Company.

Richard M. Beck, Jr., Esquire, Klehr, Harrison, Harvey, Branzburg & Ellers LLP, Wilmington, Delaware; Michael S. Komar, Esquire, Menz Bonner & Komar LLP, New York, New York, Attorneys for First State Insurance Company and Twin City Fire Insurance Company.


OPINION

STRINE, Vice Chancellor.

I. Introduction

In this action, Warren Pumps LLC ("New Warren") and Viking Pump, Inc. ("New Viking"), two companies that acquired businesses from Houdaille Industries, Inc., seek to use the insurance coverage that Houdaille purchased. Specifically, New Warren and New Viking own former pump manufacturing businesses that Houdaille used to own. As a result of those acquisitions, New Warren and New Viking now...

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