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STATE v. SIGNO TRADING INTERN., INC.

130 N.J. 51 (1992)

612 A.2d 932

STATE OF NEW JERSEY, DEPARTMENT OF ENVIRONMENTAL PROTECTION, PLAINTIFF-RESPONDENT, AND THE CITY OF NEWARK, PLAINTIFF, v. SIGNO TRADING INTERNATIONAL, INC., A CORPORATION; SCI EQUIPMENT AND TECHNOLOGY, INC., A CORPORATION; STORAGE INNOVATIONS, INC., A CORPORATION; VISTA INTERNATIONAL, A CORPORATION; ATLANTIC COAST ENVIRONMENTAL, INC., A CORPORATION; RESOURCE TECHNOLOGY SERVICES, INC., A CORPORATION; JACK COLBERT, AN INDIVIDUAL; CHARLES COLBERT, AN INDIVIDUAL; ROBERT MCKENNA, AN INDIVIDUAL; JOHN M. SPEAK, JR., AN INDIVIDUAL; EASTERN DISPOSAL, INC., A CORPORATION; AND EASTERN WASTE INDUSTRIES, INC., A CORPORATION, DEFENDANTS, AND MORTON SPRINGER & CO., INC., A CORPORATION, DEFENDANT AND THIRD-PARTY PLAINTIFF-APPELLANT, v. SCOVILL, INC., A CORPORATION; THIRD-PARTY DEFENDANT, AND FEDERAL INSURANCE COMPANY, A CORPORATION, THIRD-PARTY DEFENDANT-RESPONDENT.

The Supreme Court of New Jersey.

Reargued October 21, 1991.

Decided September 23, 1992.

Attorney(s) appearing for the Case

Clyde A. Szuch argued the cause for appellant (Pitney, Hardin, Kipp & Szuch, attorneys; Mr. Szuch, Robert G. Rose, Donald W. Kiel, Ellen M. Boyle, and David H. Harris, on the briefs).

Rachel Horowitz, Deputy Attorney General, argued the cause for respondent State of New Jersey, Department of Environmental Protection (Robert J. Del Tufo, Attorney General of New Jersey, attorney; Michael R. Clancy, Assistant Attorney General, of counsel).

William J. Brennan, III, argued the cause for respondent Federal Insurance Co., a corporation, (Smith, Stratton, Wise, Heher & Brennan, attorneys; Mr. Brennan and Wendy L. Mager, of counsel; Mr. Brennan, Ms. Mager, and Lillian E. Brown, on the briefs).

William B. McGuire submitted a brief on behalf of amicus curiae, Insurance Environmental Litigation Association (Tompkins, McGuire & Wachenfeld, attorneys).

The opinion of the Court was delivered by CLIFFORD, J.

The Appellate Division held that the "owned property" exclusion in the defendant property-owner's liability insurance policy relieved the third-party-defendant insurance carrier of any obligation to indemnify or defend its insured for its potential liability to the Department of Environmental Protection (DEP) for the cost of cleanup of toxic substances resulting from a...

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