Gencorp, Inc. v. Aiu Ins. Co.
| Decision Date | 20 May 1997 |
| Docket Number | No. 5:95-CV-2464.,5:95-CV-2464. |
| Citation | 970 F.Supp. 1253 |
| Parties | GENCORP, INC., Plaintiff, v. AIU INSURANCE COMPANY, et al., Defendants. |
| Court | U.S. District Court — Northern District of Ohio |
Dennis P. Monaghan, Thomas W. Ladd, McCarter & English, Newark, NJ, for Gencorp, Inc.
Peter I. Sheft, Jeffrey S. Leonard, Maria E. Cannon, Sheft, Golub & Kamlet, New York City, William F. Scully, Jr., Law Offices of William F. Scully, Jr., Cleveland, OH, for Riunione Adriatica Di Sicurta, Dairyland Ins. Co.
Margaret J. Orbon, Ann F. Frolik, Gordon K. Walton, Clausen Miller, Chicago, IL, Steven G. Janik, Janik & Dunn, Cleveland, OH, for American Intern. Underwriters, American Home Assurance, Granite State Ins. Co., National Union Fire Ins. Co. of Pittsburgh, PA.
Clifford C. Masch, Thomas P. Mannion, Reminger & Reminger, Cleveland, OH, for Allianz Versicherungs-A.G.
Theresa Wirtz Hajost, Mitchell A. Stearn, Alexander H. Gillespie, Sean M. Sweeney, Edward J. Riccobene, Andrew Butz, Ann T. Dorsett, Gilberg & Kurent, Washington, DC, William R. Holland, Nancy Holland Myers, Holland & Myers, Akron, OH, for American Ins. Co., Fireman's Fund Ins. Co.
David L. Lester, Ulmer & Berne, Cleveland, OH, for American Re-Insurance Co.
Wayne J. Belock, Ellyn Tamulewicz, Donald G. Drinko, Crosby, Belock & O'Brien, Cleveland, OH, for Associated Intern. Ins. Co.
David J. Fagnilli, Davis & Young, Cleveland, OH, Michael J. Baughman, Cohen & Russell, Chicago, IL, for Cigna Specialty Ins. Co., Central Nat. Ins. Co. of Omaha, Insurance Co. of North America.
John C. Weisensell, Amer, Cunningham, Brennan, Akron, OH, David J. Fagnilli, Davis & Young, Cleveland, OH, Jerome J. Duchowicz, Teresa R. Williams, Michelle B. Sage, Daniel P. Caswell, Joseph B. Royster, G. Bora, Haskell & Perrin, Chicago, IL, Michael J. Baughman, Cohen & Russell, Chicago, IL, for Continental Cas. Co., Fidelity and Cas. Ins. Co. of N.Y.
Chris T. Nolan, Peter D. Janos, Perantinides & Nolan, Akron, OH, Richard M. Hagstrom, Daniel S. Weiss, Zelle & Larson, Minneapolis, MN, for Employers Ins. of Warsau, National Cas. Co.
Stephen M. Kelley, Timothy J. Clarke, Bradford S. Moyer, Kelley, Casey & Clarke, Detroit, MI, for Employers Reinsurance Corp., St. Paul Fire and Marine Ins. Co.
Daniel F. Gourash, Margaret M. Koesel, Robert D. Anderle, Porter, Wright, Morris & Arthur, Cleveland, OH, for Federal Ins. Co.
James Michael Lyons, Jr., Buckingham, Doolittle & Burroughs, Akron, OH, Louis G. Adolfsen, Karen L. Campbell, Alla E. Huppert, Melito & Adolfsen, New York City, Thomas W. Hardin, Hardin & Schaffner, New Philadelphia, OH, for First State Ins. Co., Twin City Fire Ins. Co.
James W. Barnhouse, Kitchen, Deery & Barnhouse, Cleveland, OH, Karen Mendalka Hoerrner, Paul D. Drobbin, Robinson, St. John & Wayne, Newark, NJ, for International Ins. Co., International Surplus Lines Ins. Co.
Gerald V. Weigle, Jr., Carl J. Stich, Jr., Anne Erskine Black, Dinsmore & Shohl, Cincinnati, OH, for Liberty Mut. Ins. Co., Lexington Ins. Co., Ltd.
Michael P. Comiskey, John B. Haarlow, Daniel I. Schlessinger, Michael Yetnikoff, Jennifer A. O'Malley, Lord, Bissell & Brook, Chicago, IL, Dennis J. Bartek, Akron, OH, for Certain Underwriters at Lloyd's, London, Certain London Market Ins. Companies, Bellefonte Ins. Co., Ltd., CNA Reinsurance of London, Ltd., North Atlantic Ins. Co., Ltd., St. Katherine Ins. Co., Ltd., Stronghold Ins. Co., Winderthur Swiss Ins. Co., Ltd.
Rody P. Biggert, Seyfarth, Shaw, Fairweather & Geraldson, Chicago, IL, Peter E. Romo, Jr., Francis J. Torrence, Brent Clark, Seyfarth, Shaw, Fairweather & Geraldson, San Francisco, CA, Ross D. Roloff, Michael R. Gregg, Mary K. McGahey, Merlo, Kanofsky & Brinkmeier, Chicago, IL, for Everest Reinsurance Co., Gibraltar Cas. Co.
Alton L. Stephens, Jr., John T. Murphy, Gallagher, Sharp, Fulton & Norman, Cleveland, OH, David Ross, Michelle J. Sheehan, Reminger & Reminger, Cleveland, OH, Daniel F. Gourash, Robert D. Anderle, Porter, Wright, Morris & Arthur, Cleveland, OH, for Republic Ins. Co.
Ronald A. Rispo, Weston, Hurd, Fallon, Paisley & Howley, Cleveland, OH, Don Benson, Herbert, Treadon & Benson, Canton, OH, Joseph F. Scott, Canton, OH, for United Ins. Co., United Nat. Ins. Co.
Mark S. Hura, Law Offices of Mark S. Hura, Seven Hills, OH, David E. Trainor, Darlene M. Oliver, Tressler, Soderstrom, Maloney & Priess, Chicago, IL, for Lumbermens Mut. Cas. Co.
John C. Weisensell, Amer, Cunningham, Brennan, Akron, OH, David J. Fagnilli, Davis & Young, Cleveland, OH, Jerome J. Duchowicz, Teresa R. Williams, Michelle B. Sage, Daniel P. Caswell, Joseph B. Royster, G. Bora, Haskell & Perrin, Chicago, IL, for Continental Cas. Co.
Ronald A. Rispo, Weston, Hurd, Fallon, Paisley & Howley, Cleveland, OH, for Genco Ins. Ltd.
The plaintiff filed this action against more than three dozen defendant insurance companies, seeking, inter alia, a declaration that the defendants are obligated to defend and indemnify the plaintiff with respect to potential liabilities arising out of six hazardous waste sites. At the Case Management Conference on February 16, 1996, the Court placed the case on the complex track. As discovery developed, several parties informed the Court they wished to move for partial summary judgment with respect to liability on certain of the policies to which they believe an absolute pollution exclusion endorsement applies. The Court established a schedule for filing for partial summary judgment on issues related to those two policies.
The following parties filed motions for partial summary judgment: Certain Underwriters at Lloyd's, London ("the London Market Defendants") (Docket No. 189); Federal Insurance Company (Docket No. 205); American Re-Insurance Company (Docket No. 208); International Insurance Company as successor in interest to International Surplus Lines Insurance Company (Docket No. 209); Riunione Adriatica di Sicurta (Docket No. 210); St. Paul Fire and Marine Insurance Company (Docket No. 211); Century Indemnity Company as successor in interest to CIGNA Specialty Insurance Company, formerly known as California Union Insurance Company (Docket No. 212); Central National Insurance Company of Omaha (also Docket No. 212); First State Insurance Company (Docket No. 213); Everest Reinsurance Company, formerly known as Prudential Reinsurance Company (Docket No. 214); Gibraltar Casualty Company (also Docket No. 214); Lumbermens Mutual Casualty Company (Docket No. 215); Associated International Insurance Company (Docket No. 216); Fireman's Fund Insurance Company (Docket No. 217); AIU Insurance Company (Docket No. 220); Lexington Insurance Company (Docket No. 221); Granite State Insurance Company (Docket No. 222); Republic Insurance Company (Docket No. 223); and Allianz Versicherungs AG (Docket No. 224).
The motions are all based upon the same premise, which will be discussed in more detail infra: the defendants argue they can take advantage of a 1994 endorsement to an underlying insurance policy which retroactively eliminated insurance coverage for pollution-related matters.
Gencorp has filed a brief in response to the summary judgment motions (Docket No. 247), and the various defendants have filed reply briefs. The Court entertained oral argument on the motions on February 27, 1997, and allowed the parties to file post-argument briefs. The Court has now fully considered the motions. For reasons set forth below, the Court denies the motion of Republic Insurance Company; grants in part and denies in part the motions of Riunione Adriatica di Sicurta, First State Insurance Company, Fireman's Fund Insurance Company and AIU Insurance Company; and grants the motions of the remaining defendants. However, for reasons set forth in Part V infra, the Court shall delay placing a judgment entry on the docket until June 6, 1997.
In this lawsuit, plaintiff Gencorp Inc. ("Gencorp") seeks a declaration of coverage and money damages under various insurance policies for pollution-related claims and losses at six landfills or industrial sites in Ohio, Michigan and Connecticut. See generally Second Amended Complaint, Docket No. 184.
During the time period in question, Gencorp's underlying, or first-level umbrella, insurer was Genco Insurance Limited ("Genco").1 Genco policies provided umbrella liability coverage for the two periods in question.2 Genco Policy No. 47002 ("Genco 47002" or "47002") covered the period of January 1, 1975 to January 1, 1978. Genco Policy No. 47005 ("Genco 47005" or "47005") covered the period from January 1, 1979, to December 1, 1982.3 In addition to the underlying umbrella policies with Genco, Gencorp had numerous policies with the moving defendants under which coverage would not be triggered until coverage under the applicable Genco umbrella policy was exhausted. To one degree or another, the language in all of these policies "follows form" to the applicable Genco policy, i.e., the policies state that coverage is under the same terms and conditions as the underlying umbrella policy.
Gencorp sued many of the same insurers (including Genco) in an insurance coverage action in state court in Ohio involving different sites than those at issue here. In resolution of their dispute in the prior action, Gencorp and Genco executed a Settlement Agreement on April 7, 1994. (Response brief at Exh. D). The settlement specifically addressed coverage under policies 47002 and 47005. (Settlement Agreement at ¶ 1.1). The settlement agreement called for Genco to pay $19,910,000 to Gencorp in exchange for dismissal of the state lawsuit with prejudice. (Id. at ¶ 3.2). In turn, Gencorp agreed to release Genco from all claims arising out of policies 47002 and 47005. (Id. at ¶ 3.4).
Notwithstanding this general release of claims, the settlement agreement went a step further. Paragraph 3.6 provided the...
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