Waste Management, Inc. v. Admiral Ins. Co.

• Decision Date: 13 October 1994
• Docket Number: No. 12,12
• Citation: 138 N.J. 106,649 A.2d 379
• Parties: WASTE MANAGEMENT, INC., and its present and former subsidiaries, Waste Management Inc. of Florida; Waste Management of Alabama, Inc.; Waste Management of Arizona, Inc.; Waste Management of Colorado, Inc.; Waste Management of Connecticut, Inc.; Waste Management of Delaware, Inc.; Waste Management of Illinois, Inc.; Waste Management of Kentucky, Inc.; Waste Management of Maine, Inc.; Waste Management of Maryland, Inc.; Waste Management of Massachusetts, Inc.; Waste Management of Michigan, Inc.; Waste Management of New Hampshire, Inc.; Waste Management of New York, Inc.; Waste Management of North America, Inc.; Waste Management of Ohio, Inc.; Waste Management of Oklahoma, Inc.; Waste Management of Pennsylvania, Inc.; Waste Management of South Carolina, Inc.; Waste Management of Wisconsin, Inc.; WMI Safety Services, Inc.; WMI Waste Management of Canada Inc.; Chemical Waste Management, Inc.; Chemical Waste Management of New Jersey, Inc.; Chemical Waste Management of Kansas, Inc.; SCA Services, Inc.; SCA Disposal Services of New England, Inc.; SCA Services of Indiana, Inc.; SCA Services of New Jersey, Inc.; SCA Services of Pennsylvania, Inc.; Alderfer & Frank, Inc.; Carl Gulick, Inc.; Chem-Nuclear Systems, Inc.; Clean Harbors of Braintree, Inc.; CWM Chemical Services, Inc.; Hazco International, Inc.; Indiana Waste Systems, Inc.; Instant Disposal Service, Inc.; Interstate Waste Removal Co., Inc.; Landfill & Development Company; Michigan Landfill Holdings, Inc.; Modern Trash Removal of York, Inc.; Nu-Way Trash Removal Corp.; Ohio Waste Systems, Inc.; Refuse Services, Inc.; Rite-Way Service Inc.; S.C.R. Systems, Inc.; Sanitary Landfill, Inc.; The O'Connor Corporation; Wastecontrol of Florida, Inc.; Waste Disposal, Inc.; Wastequid, Inc.; Waste Resources Corporation; Waste Resources of Tampa Bay, Inc.; WM Acquiring Corp., Plaintiffs-Respondents, v. The ADMIRAL INSURANCE COMPANY, Aetna Casualty & Surety Company; Aetna Casualty Company of Canada; Allianz Insurance Company; Allia
• Court: New Jersey Supreme Court

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138 N.J. 106

649 A.2d 379

WASTE MANAGEMENT, INC., and its present and former subsidiaries, Waste Management Inc. of Florida; Waste Management of Alabama, Inc.; Waste Management of Arizona Inc.; Waste Management of Colorado, Inc.; Waste Management of Connecticut, Inc.; Waste Management of Delaware, Inc. Waste Management of Illinois, Inc.; Waste Management of Kentucky, Inc.; Waste Management of Maine, Inc.; Waste Management of Maryland, Inc.; Waste Management of Massachusetts, Inc.; Waste Management of Michigan, Inc. Waste Management of New Hampshire, Inc.; Waste Management of New York, Inc.; Waste Management of North America, Inc. Waste Management of Ohio, Inc.; Waste Management of Oklahoma, Inc.; Waste Management of Pennsylvania, Inc.; Waste Management of South Carolina, Inc.; Waste Management of Wisconsin, Inc.; WMI Safety Services, Inc.; WMI Waste Management of Canada Inc.; Chemical Waste Management, Inc.; Chemical Waste Management of New Jersey, Inc.; Chemical Waste Management of Kansas, Inc.; SCA Services, Inc.; SCA Disposal Services of New England, Inc.; SCA Services of Indiana, Inc.; SCA Services of New Jersey, Inc.; SCA Services of Pennsylvania, Inc.; Alderfer & Frank, Inc.; Carl Gulick, Inc.; Chem-Nuclear Systems, Inc.; Clean Harbors of Braintree, Inc.; CWM Chemical Services, Inc.; Hazco International, Inc.; Indiana Waste Systems, Inc.; Instant Disposal Service, Inc.; Interstate Waste Removal Co., Inc.; Landfill & Development Company; Michigan Landfill Holdings, Inc.; Modern Trash Removal of York, Inc.; Nu-Way Trash Removal Corp.; Ohio Waste Systems, Inc.; Refuse Services, Inc.; Rite-Way Service Inc.; S.C.R. Systems, Inc.; Sanitary Landfill, Inc.; The O'Connor Corporation; Wastecontrol of Florida, Inc.; Waste Disposal, Inc.; Wastequid, Inc.; Waste Resources Corporation; Waste Resources of Tampa Bay, Inc.; WM Acquiring Corp., Plaintiffs-Respondents, v. The ADMIRAL INSURANCE COMPANY, Aetna Casualty & Surety Company; Aetna Casualty Company of Canada; Allianz Insurance Company; Allianz Underwriters Insurance Company; Allstate Insurance Company; American Casualty Company of Reading, Pennsylvania; American Empire Surplus Lines Insurance Company; American Employers' Insurance Company; American Home Assurance Company; The American Insurance Company; American Motorists Insurance Company; American National Fire Insurance Company; American Policyholders' Insurance Company; American Reinsurance Company; Argonaut Insurance Company; Associated Indemnity Corporation; Associated International Insurance Company; Birmingham Fire Insurance Company of Pennsylvania; C.E. Heath Compensation and Liability Insurance Company; California Union Insurance Company; The Camden Fire Insurance Association; The Celina Mutual Insurance Company; Central National Insurance Company of Omaha; Century Indemnity Company; Chicago Insurance Company; Cigna Property and Casualty Insurance Company; Columbia Casualty Company; Commercial Union Insurance Company; Constitution State Insurance Company; Continental Casualty Company; The Continental Insurance Company; Crum and Forster Insurance Company; Employers Insurance of Wausau a Mutual Company; Employers Liability Assurance Corporation, Limited; Employers Mutual Casualty Company; Employers Reinsurance Corporation; Eric Reinsurance Company; Evanston Insurance Company; Federal Insurance Company; The Fidelity and Casualty Company of New York; Fireman's Fund Insurance Company; Firemen's Insurance Company of Newark, New Jersey; First State Insurance Company; Fremont Indemnity Company; General Accident Insurance Company of America; General Casualty Company of Wisconsin; Gibraltar Casualty Company; Globe Indemnity Company; Granite State Insurance Company; Great American Insurance Company; Gulf Insurance Company; The Hanover Insurance Company; Harleysville Mutual Insurance Company; Hartford Accident and Indemnity Company; Hartford Casualty Insurance Company; Highlands Insurance Company; The Home Indemnity Company; The Home Insurance Company; Hudson Insurance Company; Indiana Insurance Company; Insurance Company of North America; The Insurance Company of the State of Pennsylvania; International Insurance Company; International Surplus Lines Insurance Company; Interstate Fire & Casualty Company; Lexington Insurance Company; Liberty Mutual Insurance Company; Maryland Casualty Company; National American Insurance Company of California; National Fire Insurance Company of Hartford; National Grange Mutual Insurance Company; National Surety Corporation; National Union Fire Insurance Company of Pittsburgh, Pa.; New England Insurance Company; New England Reinsurance Corp.; The North River Insurance Company; The Northern Assurance Company of America; Northwestern National Insurance Company; The Ohio Casualty Insurance Company; Old Republic Insurance Company; Pacific Employers Insurance Company; Pennsylvania Manufacturers' Association Insurance Company; Phoenix Assurance Company of New York; Planet Insurance Company; Potomac Insurance Company of Illinois; Prudential Reinsurance Company; Puritan Insurance Company; Ranger Insurance Company; Reliance Insurance Company; Royal Indemnity Company; Royal Insurance Company of America; Safety National Casualty Company; Security Insurance Company of Hartford; Selective Insurance Company of America; The Shelby Insurance Company; Stonewall Insurance Company; St. Paul Fire and Marine Insurance Company; The St. Paul Insurance Company; St. Paul Mercury Insurance Company; St. Paul Surplus Lines Insurance Company; Transamerica Insurance Company; Transportation Insurance Company; The Travelers Indemnity Company; The Travelers Indemnity Company of RI; Twin City Fire Insurance Company; Unigard Security Insurance Company; United Fire & Casualty Company; United States Fidelity and Guaranty Company; United States Fire Insurance Company; Vanliner Insurance Company; Zurich Insurance Company (US); Underwriters at Lloyds, London; and other companies, including: Allianz International Insurance Company Limited; Bellefonte Insurance Company; Bermuda Fire & Marine Insurance Company Limited; Compagnie D'Assurances Maritimes Aeriennes & Terrestres, S.A.; Dart Insurance Company Limited; Dominion Insurance Company Limited; El Paso Insurance Company Limited; Excess Insurance Company Limited; Folksam International Insurance Company (UK) Limited; Heddington Insurance Company (UK) Limited; Lexington Insurance Company; London and Edinburgh General Insurance Company Limited; Mentor Insurance Company (UK) Limited; Mutual Reinsurance Company Limited; New Hampshire Insurance Company; Pacific and General; Southern American Insurance Company; Sovereign Marine & General Insurance Company Limited; Sovereign Marine & General Insurance Company Limited "C" A/C; Sovereign Marine & General Insurance Company Limited No. 12 A/C; Storebrand Insurance Company (UK) Limited; Stronghold Insurance Company Limited; St. Katherine Insurance Company Limited; St. Katherine Insurance Company Limited (X A/C); Taisho Marine & Fire Insurance Company (UK) Limited; Terra Nova Insurance Company; Terra Nova Insurance Company Limited; Tokio Marine & Fire Insurance Company (UK) Limited; Turegum Insurance Company; Walbrook Insurance Company Limited; Winterthur Swiss Insurance Company; and Yasuda Fire and Marine Insurance Company (UK) Limited, Defendants, and Auto-Owners Insurance Company; Canadian General Insurance Company; Commercial Union Assurance Company of Canada; Royal Insurance Company of Canada; and Wellington Insurance Company; Defendants-Appellants.

Supreme Court of New Jersey.

Argued Sept. 28, 1993.

Decided Oct. 13, 1994.

John R. Casolaro, New York City, a member of the New York bar, for appellant Canadian General Ins. Co. and Eric Proshansky, New York City, a member of the New York bar, for Wellington Ins. Co. (Pearson and Shapiro,Union,

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attorneys for Canadian General Ins. Co.; Tenzer, Greenblatt & Zunz, Hackensack, attorneys for Wellington Ins. Co.; Herrick, Feinstein, New York City, attorneys for Commercial Union Assur. Co. of Canada and Wilson, Elser, Moskowitz, Edelman & Dicker, Newark, attorneys for Royal Ins. Co. of Canada; Casolaro, Proshansky, Ronald J. Levine, New York City, Fredric H. Pearson, Union, William P. Krauss, Newark, and Joseph C. Kaplan, New York City, on the joint letter briefs).

John A. Yeager, East Lansing, MI, a member of the Michigan bar, for appellant Auto Owners Ins. Co. (Haggerty, Donohue & Monaghan, attorneys; Yeager, East Lansing, MI, and Walter E. Monaghan, Summit, on the brief).

David M. Jones, Boston, MA, a member of the Massachusetts bar, for respondents (Kerby, Cooper, English, Danis & Garvin, attorneys; Jones, Boston, MA, and Jerry Fitzgerald English, Summit, on the briefs).

Michael R. Magaril, Newark, submitted a brief on behalf of amicus curiae Tp. of West Milford (Anderson, Kill, Olick & Oshinsky, attorneys).

Carol A. Stevens, New Brunswick, submitted a brief on behalf of amici curiae The American Ins., Ass'n and The Nat. Ass'n of Independent Insurers (Watson, Stevens, Fiorilla & Rutter, attorneys).

The opinion of the Court was delivered by

CLIFFORD, J.

On this interlocutory appeal, two rulings of the trial court raise issues of first impression. In denying defense motions to dismiss this declaratory-judgment action, the court held, first, that a "territory of coverage" clause in an insurance policy, without more, is a sufficient basis on which to rest in personam jurisdiction over a nonresident insurance carrier. With that holding the trial court became the only court in this or any other jurisdiction to declare that a "territory of coverage" clause standing alone confers jurisdiction over an alien insurer. Second, the trial court

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held that New Jersey's "interest nexus" in resolving massive environmental insurance-coverage cases comprehensively can, by itself, confer personal jurisdiction over foreign carriers with no ties whatsoever to this...