SAPA EXTRUSIONS, INC. v. LIBERTY MUTUAL INSURANCE

No. 18-2206.

939 F.3d 243 (2019)

SAPA EXTRUSIONS, INC. f/k/a ALCOA Extrusions, Inc., Appellant, v. LIBERTY MUTUAL INSURANCE COMPANY; National Union Fire Insurance Company of Pittsburgh, PA; Gerling Konzern Allegemeine Versicherungs-AG a/k/a Gerling Konzern General Insurance Company; Pacific Employers Insurance Company; Ace American Insurance Company; Arch Specialty Insurance Company f/k/a Rock River Insurance Company; Great American Assurance Company; Insurance Company of the State of Pennsylvania.

United States Court of Appeals, Third Circuit.

Filed: September 13, 2019.


Attorney(s) appearing for the Case

James C. Martin [Argued], Reed Smith LLP, Reed Smith Center, 225 Fifth Avenue, Pittsburgh, PA 15222, Luke E. Debevec , Jenna Farr , Reed Smith LLP, Three Logan Square, 1717 Arch Street, Suite 3100, Philadelphia, PA 19103, Michael Conley , Meghan K. Finnerty , Offit Kurman, 1801 Market Street, Suite 2300, Philadelphia, PA 19103, Counsel for Appellant Sapa Extrusions, Inc.

Teresa Ficken Sachs [Argued], William C. Foster , Audrey J. Copeland , Marshall Dennehey Warner Coleman & Goggins, 2000 Market Street, Suite 2300, Philadelphia, PA 19103, Counsel for Appellee Liberty Mutual Insurance Company.

Phillip R. Earnest , Adam J. Tragone , Pietragallo Gordon Alfano Bosick & Raspanti LLP, 301 Grant Street, Pittsburgh, PA 15219, Agelo L. Reppas , Allyson C. Spacht , Batescarey LLP, 191 North Wacker Drive, Suite 2400, Chicago, IL 60606, Counsel for Appellees National Union Fire Insurance Company of Pittsburgh, PA, and Insurance Company of the State of Pennsylvania.

Shane R. Heskin , White and Williams LLP, 1650 Market Street, One Liberty Place, Suite 1800, Philadelphia, PA 19103, Counsel for Appellee Gerling Konzern Allegemeine Versicherungs AG, a/k/a Gerling Konzern General Insurance Company.

Stephen A. Cozen [Argued], Deborah M. Minkoff , Stephen S. Kempa , COZEN O'CONNOR, 1650 Market Street, Suite 2800, Philadelphia, PA 19103, Counsel for Appellees Pacific Employers Insurance Company and Ace American Insurance Company.

Jonathan P. McHenry , Thomas M. Wester , Connell Foley LLP, 56 Livingston Avenue, Roseland, NJ 07068, Counsel for Appellee Arch Specialty Insurance Company.

Michael A. Kotula , Michael E. Buckley , Rivkin Radler LLP, 926 RXR Plaza Uniondale, NY 11556, Counsel for Appellee Great American Assurance Company.

John G. Koch , Weisbrod Matteis & Copley PLLC, Two Logan Square, Suite 1925, 100 N. 18th Street, Philadelphia, PA 19103, Counsel for Amicus Curiae United Policyholders.

Maureen M. McBride , James C. Sargent , Lamb McErlane PC, 24 East Market Street, Box 565, West Chester, PA 19381, Counsel for Amici Curiae American Property Casualty Insurance Association and Insurance Federation of Pennsylvania.

Louis C. Long , Thomas, Thomas & Hafer, 525 William Penn Place, Suite 3750, Pittsburgh, PA 15219, Counsel for Amicus Curiae Pennsylvania Defense Institute.

Robert J. Cosgrove , Wade Clark Mulcahy, 1515 Market Street, Suite 2050, Philadelphia, PA 19102, Counsel for Amicus Curiae Philadelphia Association of Defense Counsel.

Before: RESTREPO, PORTER, and FISHER, Circuit Judges.


OPINION OF THE COURT

This appeal asks whether, under Pennsylvania insurance law, a manufacturer may recover from its liability insurers the cost of settling a lawsuit alleging that the manufacturer's product was defective. Consistent with long-standing precedent, we hold that recovery turns on the language of the...

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