Port Auth. of Ny & Nj v. Affiliated Fm Ins. Co.

• Decision Date: 14 November 2002
• Docket Number: No. 01-2513.,01-2513.
• Citation: Port Auth. of Ny & Nj v. Affiliated Fm Ins. Co., 311 F.3d 226 (3rd Cir. 2002)
• Parties: PORT AUTHORITY OF NEW YORK AND NEW JERSEY; Port Authority Trans-Hudson Corporation (Path); Appalachian Insurance Company v. AFFILIATED FM INSURANCE COMPANY, and all other Defendants; Icarom, P.L.C., as Successor in interest to Insurance Corporation of Ireland (P.L.C.); Affiliate FM Insurance Company; Allianz Insurance Company, as Successor in interest to Allianz Underwriters, Inc.; Allstate Insurance Co., as Successor in interest to Northbrook Excess and Surplus Insurance Company; American Centennial Insurance Company; American Home Assurance Company; American Motorists Insurance Company; American Protection Insurance Company; Appalachian Insurance Company; Arkwright Mutual Insurance Company, as Successor in interest to Arkwright Boston Mfgrs. Mutual Insurance Company; Birmingham Fire Insurance Company of Pennsylvania; California Union Insurance Company; Citibank, N.A., as Trustee of Lloyd's American Trust Fund; Columbia Casualty Company; Continental Insurance Company; Covenant Mutual Insurance Company; Employers Mutual Casualty Company; Federal Insurance Company; Fireman's Fund Indemnity Corporation; Hartford Accident & Indemnity Company; Hartford Fire Insurance Company; Home Indemnity Company, the; Insurance Company of North America; Insurance Company of the State of Pennsylvania; Lexington Insurance Company; Lumbermens Mutual Casualty Company; Pennsylvania Lumbermens Mutual Insurance Company; Providence Washington Insurance Company; Ranger Insurance Company; Twin City Fire Insurance Company; United States Fire & Casualty Company; London Market Insurers Subscribing to Lloyds Policies Including the Following: Assicurazioni Generali DI Trieste E Venezia; Baltica Insurance Company, (U.K.) Ltd., as Successor in interest to Baltica-Skandinavia Insurance Company (U.K.) Ltd.; Bermuda Fire & Marine Insurance Company Limited; British National Insurance Company, Individually and as Successor in interest to North Atlantic Insurance Company and as Successor in interest to British National Life Insurance Society; Bryanston Insurance Company Limited; CNA Reinsurance of London Limited; Compagnie D'Assurances Maritimes, Aeriennes Et Terrestres, S.A. (C.A.M.A.T.I.); Compagnie Europeenne D'Assurances Industrielles, S.A.; El Paso Insurance Company Limited; English and American Insurance Company; Excess Insurance Company Limited; Folksam International Insurance Company Limited; Insco Limited; Icarom, P.L.C., as Successor in interest to Insurance Corporation of Ireland (P.L.C.); Lloyds Syndicates Numbered as Follows, 2 (C.R. Hill), 4 (B.A. Stewart), 15 (T.W. Obrien), 17 (P.N. Christmas), 28 (D.K.L. White), 31 (M.F. Baird), 33 (I.N. Thomson), 34 (T.K. Harding), 40 (A.P. Bartleet), 42 (P. Hunt), 53 (R.F. Eliot), 50 (D.A. Beaumont), 51 (A. Taylor), 52 (P. Hunt), 56 (M.P. Manning), 65 (P.D. Morey), 67 (P.D. Morey), 79 (J.R.L. Youell), 80 (S.G. Thompson), 87 (A.M. Gorsuch), 89 (M.E. Brockbank), 90 (E.A. Moore), 98 (B.F. Bruce), 108 (S.R. Fletcher), 109 (A.P. Targett), 123 (W.M. Michell), 127 (A.J. Archer), 142 (D.T. Potter), 144 (P.M. Johnson), 145 (J.R. Charman), 162 (M.D. Seaby), 174 (B.G. Bruce), 176 (C.R. Hill), 179 (R.W.S. Lark), 180 (R.A.F. MacMillan), 182 (A. Taylor), 183 (M. Ashley), 185 (A.M. Gorsuch), 187 (C.R. Hill), 190 (R.D. Hazell), 191 (R.D. Hazell), 202 (R.G. Bennett), 203 (S.C. Wilmot-Smith), 204 (R.A. Field), 206 (M.J.H. Maughan), 207 (S.R.P. Edwards), 209 (B.G. Adams), 210 (A.G. Lee), 212 (R.J. McCarthy), 219 (C.H.A. Sicey), 231 (J.M.H.P. Wetherell), 232 (E. Pieri), 239 (S.I. Cowley), 247 (D.A. Pollock), 250 (D.J. Flett), 256 (G.M. Williams), 257 (K.R. Smith), 264 (B.L. Evens), 269 (M.H. Cockell), 275 (J.H. Chappell), 282 (M.J. Marchant), 284 (M.J. Marchant), 288 (K.A. Long), 295 (M.E. Seaby), 299 (A.A. Willard), 303 (B.R. Branch), 309 (J.B. Hingham), 317 (R.H.M. Outhwaite), 321 (T.G. Green), 322 (R.D. Robertson), 331 (R.H. Gibbs), 342 (R.J. Barry), 358 (B.L. Evens), 362 (R.J.R. Keeling), 363 (J.J.S. Birrell), 368 (A.D. Pilcher), 375 (R.D. Hazell), 381 (M.J. Harris), 384 (S.J. Edwards), 404 (R.A. Lissenden), 406 (S.I. Cowley), 411, 412 (A.D. Pilcher), 435 (D.P. Mann), 438 (T.R. Anstey), 441 (G.C.F. Palmer), 446 (D.A. Beaumont), 447 (D.A. Beaumont), 448 (A.M. England), 457 (M.C. Watkins), 469 (Simmonds), 471 (F.J. Austin), 475 (R.J. Bromley), 483 (P.R. Chandler), 484 (R.E. Thomson), 488 (J.R. Charman), 489 (J.R. Charman), 498 (A.B.W. Phillips), 500 (T.J. Pepper), 505 (A.J. Archer), 508 (J.R. Plant), 510 (G.D. Gilchrist), 512 (P.W. Murray), 522 (M.B. Gray), 527 (L.C. Taylor), 529 (A.M.C. Underwood), 535 (G. Davies), 540 (P.F. Fagan), 544 (A.A. Pitt), 545 (T.O. Pitron), 552 (C.J. Mander), 584 (C.W. Hankin), 588 (M.E. Brockbank), 590 (R.F. De L. Willis), 595 (C.D.D. Gilmour), 602 (D.H. Forrest), 604 (T.G. Halloway), 609 (M.E. Denby), 613 (M.J. Bonds), 620 (A.M. England), 623 (A.F. Beazley), 635 (B. Coleman), 636 (J.D.P. Barnes), 640 (P.L. Toomey), 648 (B. Coleman), 653 (J.M.H.P. Wetherell), 660 (J.L. Dodson), 662 (C.W. Rome), 672 (W.C. Agnew), 685 (B.M. Roddick), 694 (T.J. Hayday), 697 (A.E. Bathurst), 700 (J.R. Charman), 701 (J.R. Charman), 707 (J.K. Spicer), 722 (F.J. Austin), 724 (S.A. Holmes), 725 (T.J. Kemp), 727 (M.J. Meacock), 730 (E.A. Moore), 735 (A.F. Jackson), 741 (A.J. Archer), 744 (T.P. Johnson), 750 (A.C. Ashby), 764 (N.P. Compton), 780 (B.F. Caudle), 782 (P.N. Slade), 799 (R.A.G. Jackson), 800 (J.A. Westcott), 801 (J.H. Davies), 803 (G.W. Hutton), 807 (R.F.H. Wilshaw), 812 (B.F. Bruce), 823 (R.J.R. Kneeling), 829 (B.R. Bruce), 836 (V.E. Emmes), 842 (B.F. Bruce), 843 (S.G. Thomson), 846 (A. Taylor), 850 (P.J. Hubert), 855 (J.P.H. Harrison), 860 (P.A. Edwards), 861 (M.E. Brockbank), 868 (A.J. Archer), 880 (M.E. Brockbank), 884 (R.W.S. Lark), 900 (B.F. Bruce), 901 (H.W. Gascoine), 904 (M.C. Watkins), 908 (J.R. Charman), 920 (G.C.F. Palmer), 923 (M.J. Harris), 926 (C.W. Rome), 927 (C.N. MacKinnon), 933 (J.R.L. Youell), 937 (J.R.L. Youell), 942 (A.J. Avery), 947 (M.J. Harris), 950 (J.C. Nevitt), 960 (B.E. Beagley), 972 (B.F. Bruce), 984 (R.A. Lissenden), 987 (D.A. Beaumont), 990 (M.J. Cox), 991 (M.J. Cox), 994 (B.P.D. Kellett), 1014 (G. McCall), 1023 (R.K. Webb), 1027 (M.F. Newton); Lime Street Insurance Company, as Successor in interest to Louisville Insurance Company; Ludgate Insurance Company Limited; Mutual Reinsurance Company Limited; Orion Insurance Company Limited; Peoples Insurance Company of China; River Thames Insurance Company Limited; Scandinavian Reinsurance Company Limited; Scottish Lion Insurance Company; Simcoe and Erie General Insurance Company; Societe De Reassurances Des Assurances Mutuelles Gricoles; Sorema Reinsurance Company, as Successor in interest to Copenhagen Reinsurance Company (U.K.) Limited; St. Katherine Insurance Company; Terra Nova Insurance Company Limited; Turegum Insurance Company; Universal Reinsurance, as Successor in interest to Bellefonte Reinsurance Co.; Walbrook Insurance Company; "Winterthur" Swiss Insurance Company; Yasuda Marine & Fire Insurance Company (U.K.) Limited; Certain Underwriters at Lloyd's London; Certain Companies in the London Market; Coleridge and London Market Companies Appalachian Insurance Company v. Port Authority of New York and New Jersey, formerly "the Port of New York Authority"; Port Authority Trans-Hudson Corporation; Port Authority of New York and New Jersey; Port Authority Trans-Hudson Corporation (PATH), Appellants.
• Court: U.S. Court of Appeals — Third Circuit

Page 226

311 F.3d 226

PORT AUTHORITY OF NEW YORK AND NEW JERSEY; Port Authority Trans-Hudson Corporation (Path); Appalachian Insurance Company v. AFFILIATED FM INSURANCE COMPANY, and all other Defendants; Icarom, P.L.C., as Successor in interest to Insurance Corporation of Ireland (P.L.C.); Affiliate FM Insurance Company; Allianz Insurance Company, as Successor in interest to Allianz Underwriters, Inc.; Allstate Insurance Co., as Successor in interest to Northbrook Excess and Surplus Insurance Company; American Centennial Insurance Company; American Home Assurance Company; American Motorists Insurance Company; American Protection Insurance Company; Appalachian Insurance Company; Arkwright Mutual Insurance Company, as Successor in interest to Arkwright Boston Mfgrs. Mutual Insurance Company; Birmingham Fire Insurance Company of Pennsylvania; California Union Insurance Company; Citibank, N.A., as Trustee of Lloyd's American Trust Fund; Columbia Casualty Company; Continental Insurance Company; Covenant Mutual Insurance Company; Employers Mutual Casualty Company; Federal Insurance Company; Fireman's Fund Indemnity Corporation; Hartford Accident & Indemnity Company; Hartford Fire Insurance Company; Home Indemnity Company, the; Insurance Company of North America; Insurance Company of the State of Pennsylvania; Lexington Insurance Company; Lumbermens Mutual Casualty Company; Pennsylvania Lumbermens Mutual Insurance Company; Providence Washington Insurance Company; Ranger Insurance Company; Twin City Fire Insurance Company; United States Fire & Casualty Company; London Market Insurers Subscribing to Lloyds Policies Including the Following: Assicurazioni Generali DI Trieste E Venezia; Baltica Insurance Company, (U.K.) Ltd., as Successor in interest to Baltica-Skandinavia Insurance Company (U.K.) Ltd.; Bermuda Fire & Marine Insurance Company Limited; British National Insurance Company, Individually and as Successor in interest to North Atlantic Insurance Company and as Successor in interest to British National Life Insurance Society; Bryanston Insurance Company Limited; CNA Reinsurance of London Limited; Compagnie D'Assurances Maritimes, Aeriennes Et Terrestres, S.A. (C.A.M.A.T.I.); Compagnie Europeenne D'Assurances Industrielles, S.A.; El Paso Insurance Company Limited; English and American Insurance Company; Excess Insurance Company Limited; Folksam International Insurance Company Limited; Insco Limited; Icarom, P.L.C., as Successor in interest to Insurance Corporation of Ireland (P.L.C.);

Lloyds Syndicates Numbered as Follows, 2 (C.R. Hill), 4 (B.A. Stewart), 15 (T.W. Obrien), 17 (P.N. Christmas), 28 (D.K.L. White), 31 (M.F. Baird), 33 (I.N. Thomson), 34 (T.K. Harding), 40 (A.P. Bartleet), 42 (P. Hunt), 53 (R.F. Eliot), 50 (D.A. Beaumont), 51 (A. Taylor), 52 (P. Hunt), 56 (M.P. Manning), 65 (P.D. Morey), 67 (P.D. Morey), 79 (J.R.L. Youell), 80 (S.G. Thompson), 87 (A.M. Gorsuch), 89 (M.E. Brockbank), 90 (E.A. Moore), 98 (B.F. Bruce), 108 (S.R. Fletcher), 109 (A.P. Targett), 123 (W.M. Michell), 127 (A.J. Archer), 142 (D.T. Potter), 144 (P.M. Johnson), 145 (J.R. Charman), 162 (M.D. Seaby), 174 (B.G. Bruce), 176 (C.R. Hill), 179 (R.W.S. Lark), 180 (R.A.F. MacMillan), 182 (A. Taylor), 183 (M. Ashley), 185 (A.M. Gorsuch), 187 (C.R. Hill), 190 (R.D. Hazell), 191 (R.D. Hazell), 202 (R.G. Bennett), 203 (S.C. Wilmot-Smith), 204 (R.A. Field), 206 (M.J.H. Maughan), 207 (S.R.P. Edwards), 209 (B.G. Adams), 210 (A.G. Lee), 212 (R.J. McCarthy), 219 (C.H.A. Sicey), 231 (J.M.H.P. Wetherell), 232 (E. Pieri), 239 (S.I. Cowley), 247 (D.A. Pollock), 250 (D.J. Flett), 256 (G.M. Williams), 257 (K.R. Smith), 264 (B.L. Evens), 269 (M.H. Cockell), 275 (J.H. Chappell), 282 (M.J. Marchant), 284 (M.J. Marchant), 288 (K.A. Long), 295 (M.E. Seaby), 299 (A.A. Willard), 303 (B.R. Branch), 309 (J.B. Hingham), 317 (R.H.M. Outhwaite), 321 (T.G. Green), 322 (R.D. Robertson), 331 (R.H. Gibbs), 342 (R.J. Barry), 358 (B.L. Evens), 362 (R.J.R. Keeling), 363 (J.J.S. Birrell), 368 (A.D. Pilcher), 375 (R.D. Hazell), 381 (M.J. Harris), 384 (S.J. Edwards), 404 (R.A. Lissenden), 406 (S.I. Cowley), 411, 412 (A.D. Pilcher), 435 (D.P. Mann), 438 (T.R. Anstey), 441 (G.C.F. Palmer), 446 (D.A. Beaumont), 447 (D.A. Beaumont), 448 (A.M. England), 457 (M.C. Watkins), 469 (Simmonds), 471 (F.J. Austin), 475 (R.J. Bromley), 483 (P.R. Chandler), 484 (R.E. Thomson), 488 (J.R. Charman), 489 (J.R. Charman), 498 (A.B.W. Phillips), 500 (T.J. Pepper), 505 (A.J. Archer), 508 (J.R. Plant), 510 (G.D. Gilchrist), 512 (P.W. Murray), 522 (M.B. Gray), 527 (L.C. Taylor), 529 (A.M.C. Underwood), 535 (G. Davies), 540 (P.F. Fagan), 544 (A.A. Pitt), 545 (T.O. Pitron), 552 (C.J. Mander), 584 (C.W. Hankin), 588 (M.E. Brockbank), 590 (R.F. De L. Willis), 595 (C.D.D. Gilmour), 602 (D.H. Forrest), 604 (T.G. Halloway), 609 (M.E. Denby), 613 (M.J. Bonds), 620 (A.M. England), 623 (A.F. Beazley), 635 (B. Coleman), 636 (J.D.P. Barnes), 640 (P.L. Toomey), 648 (B. Coleman), 653 (J.M.H.P. Wetherell), 660 (J.L. Dodson), 662 (C.W. Rome), 672 (W.C. Agnew), 685 (B.M. Roddick), 694 (T.J. Hayday), 697 (A.E. Bathurst), 700 (J.R. Charman), 701 (J.R. Charman), 707 (J.K. Spicer), 722 (F.J. Austin), 724 (S.A. Holmes), 725 (T.J. Kemp), 727 (M.J. Meacock), 730 (E.A. Moore), 735 (A.F. Jackson), 741 (A.J. Archer), 744 (T.P. Johnson), 750 (A.C. Ashby), 764 (N.P. Compton), 780 (B.F. Caudle), 782 (P.N. Slade), 799 (R.A.G. Jackson), 800 (J.A. Westcott), 801 (J.H. Davies), 803 (G.W. Hutton), 807 (R.F.H. Wilshaw), 812 (B.F. Bruce), 823 (R.J.R. Kneeling), 829 (B.R. Bruce), 836 (V.E. Emmes), 842 (B.F. Bruce), 843 (S.G. Thomson), 846 (A. Taylor), 850 (P.J. Hubert), 855 (J.P.H. Harrison), 860 (P.A. Edwards), 861 (M.E. Brockbank), 868 (A.J. Archer), 880 (M.E. Brockbank), 884 (R.W.S. Lark), 900 (B.F. Bruce), 901 (H.W. Gascoine), 904 (M.C. Watkins), 908 (J.R. Charman), 920 (G.C.F. Palmer), 923 (M.J. Harris), 926 (C.W. Rome), 927 (C.N. MacKinnon), 933 (J.R.L. Youell), 937 (J.R.L. Youell), 942 (A.J. Avery), 947 (M.J. Harris), 950 (J.C. Nevitt), 960 (B.E. Beagley), 972 (B.F. Bruce), 984 (R.A. Lissenden), 987 (D.A. Beaumont), 990 (M.J. Cox), 991 (M.J. Cox), 994 (B.P.D. Kellett), 1014 (G. McCall), 1023 (R.K. Webb), 1027 (M.F. Newton); Lime Street Insurance Company, as Successor in interest to Louisville Insurance Company; Ludgate Insurance Company Limited; Mutual Reinsurance Company Limited; Orion Insurance Company Limited; Peoples Insurance Company of China; River Thames Insurance Company Limited; Scandinavian Reinsurance Company Limited; Scottish Lion Insurance Company; Simcoe and Erie General Insurance Company; Societe De Reassurances Des Assurances Mutuelles Gricoles; Sorema Reinsurance Company, as Successor in interest to Copenhagen Reinsurance Company (U.K.) Limited; St. Katherine Insurance Company; Terra Nova Insurance Company Limited; Turegum Insurance Company; Universal Reinsurance, as Successor in interest to Bellefonte Reinsurance Co.; Walbrook Insurance Company; "Winterthur" Swiss Insurance Company; Yasuda Marine & Fire Insurance Company (U.K.) Limited; Certain Underwriters at Lloyd's London; Certain Companies in the London Market; Coleridge and London Market Companies Appalachian Insurance Company v. Port Authority of New York and New Jersey, formerly "the Port of New York Authority"; Port Authority Trans-Hudson Corporation; Port Authority of New York and New Jersey; Port Authority Trans-Hudson Corporation (PATH), Appellants.

No. 01-2513.

United States Court of Appeals, Third Circuit.

Argued September 9, 2002.

Filed November 14, 2002.

Carlene V. McIntyre (Argued), Hugh H. Welsh, Milton H. Pachter, Michael D. Driscoll, Shirley J. Goldstein, Ezra I. Bialik, Dolores J. Ostaszewski, Law Department, the Port Authority of New York and New Jersey, New York, NY, for Appellants.

Kenneth W. Erickson (Argued), Matthew M. Burke, Jane E. Willis, David M. Stringer, Ropes & Gray, Boston, MA, for Appellees, Coleridge and London Market Companies, Icarom, P.L.C., Lexington Insurance Company, Baltica Insurance Company, CNA Reinsurance of London Limited, Compagnie D'Assurances Maritimes Aeriennes Et Terrestres, S.A., Compagnie Europeenne D'Assurances Industrielles S.A., Excess Insurance Company Limited, Folksam International Insurance Company Limited, Insco Limited, River Thames Insurance Company Limited, Scottish Lion Insurance Company, Simcoe and Erie General Insurance Company, St. Katherine Insurance Company, Terra Nova Insurance Company Limited, Turegum Insurance Company, "Winterthur" Swiss Insurance Company, Yasuda Fire & Marine Insurance Company, Certain London Market Companies and Assicurazioni Generali, S.p.A.

Gregory R. Haworth, Duane, Morris LLP, Newark, NJ, for Appellee, Coleridge and London Market Companies.

Matthew S. Ponzi, Thomas B. Orlando, Foran Glennon Palandech & Ponzi, Chicago, IL, for Appellee, United Fire & Casualty Company.

Richard M. Mackowsky, Michael R. McCarty, Cozen & O'Connor, Philadelphia, PA, Andrew S. Amer, Simpson, Thacher & Bartlett, New York, NY, for Appellees, Hartford Fire Insurance Company and Hartford Accident & Indemnity Company.

Stuart Cotton, Jeffrey S. Weinstein, Mound, Cotton, Wollan & Greengrass, New York, NY, for Appellees, American Home Assurance Company, Birmingham Fire Insurance Company of Pennsylvania, Insurance Company of the State of Pennsylvania, Lexington Insurance Company and Providence Washington Insurance Company.

H. Richard Chattman, Podvey, Sachs, Meanor, Catenacci, Hildner & Cocoziello, Newark, NJ, for Appellee, Affiliated FM Insurance Company.

Peter E. Kanaris, Lawrence D. Mason, Daar, Fisher, Kanaris & Vanek, Chicago, IL, for Appellees, Allianz Insurance Company, Continental Insurance Company, Employers Mutual Casualty Company, Federal Insurance Company and Home Indemnity Company.

Jerrald H. Hochman, Siegal & Napierkowski, Cherry Hill, NJ, for Appellee, Insurance Company of North America.

Before NYGAARD, ROTH, and WEIS, Circuit Judges.

OPINION OF THE COURT

WEIS,...