Environmental Ins. Declaratory Judgment Actions, In re
| Decision Date | 12 May 1997 |
| Docket Number | CIBA-GEIGY |
| Citation | 693 A.2d 844,149 N.J. 278 |
| Parties | , 65 USLW 2751 In re ENVIRONMENTAL INSURANCE DECLARATORY JUDGMENT ACTIONS.CORPORATION, Plaintiff-Appellant and Cross-Respondent, v. LIBERTY MUTUAL INSURANCE COMPANY, Insurance Company of North America, Accident & Casualty Insurance Company of Winterthur, Admiral Insurance Company, Aetna Casualty & Surety Company, Agrippina Versicherungs-Aktiengesellschaft, AIU Insurance Company, Alba General Insurance Company Ltd., Allianz Versicherungs-Aktiengesellschaft, American Home Assurance Company, American Re-Insurance Company, American Star Insurance Company, Andrew Weir Insurance Company Ltd., Anglo French Insurance Company Ltd., Anglo Saxon Insurance Company Ltd., Argonaut Northwest Insurance Company, Assicurazioni Generali Di Trieste E. Venezia S.P.A., Baloise Fire Insurance Company, The Baloise Insurance Company of America, Bellefonte Insurance Company, Bercanus Insurance Company Limited, Bermuda Fire and Marine Insurance Company Ltd., Birmingham Fire Insurance Company of Pennsylvania, Bishopsgate Insurance Company Ltd., The British Commercial Insurance Company Ltd., British National Life Insurance Society Ltd., British & Overseas Insurance Company Ltd., Brittany Insurance Company Ltd., Bryanston Insurance Company Limited, California Union Insurance Company, The Central National Insurance Company of Omaha, CIA Agricola De Seguros S.A., City General Insurance Company Ltd., Citizens Casualty Company of New York, City Insurance Company, CNA Reinsurance of London Limited, Colonia Versicherung Aktiengesellschaft, Columbia Casualty Company, Compagnie Belge D'Assurances Generales Incendie Accidents et Risques Divers, Compagnie Europeenne D'Assurances Industrielles S.A., Continental Casualty Company, Dart and Kraft Insurance Company Ltd., Dart Insurance Company Limited, Delta-Lloyd Non-Life Insurance Company Ltd., The Dominion Insurance Company Ltd., The Drake Insurance Company Ltd., Economic Insurance Company Ltd., Edinburgh Assurance Company Ltd., El Paso Insurance Company Li |
| Court | New Jersey Supreme Court |
Robert Mahoney, Roseland, for plaintiffs-appellants GEI International Incorporated, etc., et al. (Friedman Siegelbaum, attorneys Mr. Mahoney and James M. Andrews, of counsel, and on the brief).
Vincent R. FitzPatrick, Jr., New York City, a member of the New York bar, for plaintiff-appellant and cross-respondent Ciba-Geigy Corporation (Hayden, Perle & Silber, attorneys).
James W. Christie, III, for defendants-respondents and cross-appellants Commercial Union Insurance Company, as successor to The Ocean Accident & Guarantee Corporation, Ltd.; The Employers' Liability Assurance Corporation, Ltd.; American Employers' Insurance Company; and Employers' Surplus Lines Insurance Company (Christie, Pabarue, Mortensen and Young, Cherry Hill, attorneys).
Stefano V. Calogero, Parsippany, for defendants-respondents and cross-appellants General Reinsurance Corporation, North Star Reinsurance Corporation, Allstate Insurance Company, as successor in interest to Northbrook Excess and Surplus Insurance Company, formerly Northbrook Insurance Company and Zurich International Limited (Cuyler Burk, attorneys).
Paul R. Koepff, New York City, a member of the New York bar, for defendant-respondent Century Indemnity Company (as successor to CCI Insurance Company, which itself is the successor to the Insurance Company of North America) (Graham, Curtin & Sheridan, attorneys).
Paul E. Breene, Newark, submitted briefs on behalf of amicus curiae, New Jersey Public Risk Managers' Association (Anderson Kill Olick & Oshinsky, attorneys; Mr. Breene and Jennifer D. Marell, of counsel).
The opinion of the Court was delivered by
These appeals pose the issue whether a constitutional right to a jury trial exists in an action for a declaratory judgment concerning claims against insurers for breach of contract and the recovery of future remediation costs. Resolution of the issue depends on whether such an action is more like a traditional common-law action for damages or one for equitable relief.
In Ciba-Geigy v. Liberty Mutual Insurance Co., plaintiff Ciba-Geigy Corporation ("Ciba-Geigy") sued its insurers seeking a judgment declaring that the insurers are obligated to defend and indemnify it for future costs of environmental remediation. Ciba-Geigy also seeks compensatory damages for remediation costs that it has already incurred. The Law Division granted Ciba-Geigy's motion, in which the insurers initially joined, for a jury trial.
On March 6, 1996, defendant Century Indemnity Company ("Century"), changed its position and moved for a trial by the court without a jury. Defendants Unigard Security Insurance Company and Great American Insurance Company joined Century's motion. Ciba-Geigy and five other...
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