FARMERS MUT. v. PROP.-LIABILITY

A-42 September Term 2011, 068824

74 A.3d 860 (2013)

215 N.J. 522

FARMERS MUTUAL FIRE INSURANCE COMPANY OF SALEM, Plaintiff-Appellant, v. NEW JERSEY PROPERTY-LIABILITY INSURANCE GUARANTY ASSOCIATION as Administrator of Claims against Newark Insurance Company, Defendant-Respondent.

Supreme Court of New Jersey.

Decided September 24, 2013.


Attorney(s) appearing for the Case

Fredric P. Gallin argued the cause for appellant (Methfessel & Werbel, attorneys).

Mark M. Tallmadge argued the cause for respondent (Bressler, Amery & Ross, attorneys; Mr. Tallmadge and Richard J. Teer , Florham Park, on the briefs).

Paul R. Duffy , Liberty Corner, on behalf of respondent State Farm Fire & Casualty Co. as subrogee of Welz joins in the brief submitted by appellant Farmers Mutual Fire Insurance Company of Salem (Kearns & Duffy, attorneys).

Kevin T. Coughlin submitted a brief on behalf of amicus curiae Zurich American Insurance Company (Coughlin Duffy, attorneys, Mr. Coughlin , Lorraine M. Armenti , Christopher S. Franges , and Eduardo DeMarco , Morristown, of counsel and on the brief).

Wendy L. Mager and Thomas E. Hastings , Princeton, submitted a brief on behalf of amicus curiae The Complex Insurance Claims Litigation Association (Smith, Stratton, Wise, Heher & Brennan, attorneys; Laura A. Foggan, a member of the District of Columbia bar, of counsel).


Justice ALBIN delivered the opinion of the court.

This case involves the appropriate allocation of costs for the cleanup of environmental contamination of property when one of two insurance companies on the risk has become insolvent.

In Owens-Illinois, Inc. v. United Insurance Co., we recognized the difficulty of determining the degree of harm caused by contamination within any particular year from the time of toxic exposure to manifestation.

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