15-2047(L) Olin Corp. v. OneBeacon Am. Ins. Co.
In the United States Court of Appeals For the Second Circuit __________________
August Term, 2016
(Argued: January 12, 2017 Decided: July 18, 2017)
Docket No. 15-2047(L); 15-2057 (XAP); 15-2757 (CON); 15-2763 (XAP) __________________
OLIN CORPORATION,
Plaintiff-Counter-Defendant-Appellee-Cross-Appellant,
V.
ONEBEACON AMERICA INSURANCE COMPANY, REFERRED TO IN THIS LITIGATION AS COMMERCIAL UNION INSURANCE COMPANY,
Defendant-Appellant-Cross-Appellee,
INSURANCE COMPANY OF NORTH AMERICA, HANOVER INSURANCE COMPANY, AS SUC- CESSOR TO MASSACHUSETTS BONDING AND INSURANCE COMPANY, AMERICAN RE- INSURANCE COMPANY, CERTAIN UNDERWRITERS AT LLOYDS LONDON AND LONDON MARKET INSURANCE COMPANIES, LONDON MARKET INSURANCE COMPANIES, COMMER- CIAL UNION INSURANCE COMPANY, AS SUCCESSOR TO EMPLOYERS LIABILITY ASSUR- ANCE CORPORATION LTD. AND EMPLOYERS COMMERCIAL UNION INSURANCE COMPANY AMERICA, CONTINENTAL CASUALTY COMPANY, C.E. HEALTH COMPENSATION & LIABIL- ITY INSURANCE CO., AS SUCCESSOR TO FALCON INSURANCE COMPANY, SUCCESSOR TO EMPLOYERS SURPLUS LINES INSURANCE COMPANY, FEDERAL INSURANCE COMPANY, FIREMAN'S FUND INSURANCE COMPANY, GREAT AMERICAN INSURANCE COMPANY, LEX- INGTON INSURANCE COMPANY, LONDON & EDINBURGH INSURANCE COMPANY LIMITED, CAPITAL MARKETS ASSURANCE CORP., AS SUCCESSOR TO NATIONAL AMERICAN INSUR- ANCE COMPANY OF NEW YORK, SUCCESSOR TO STUYVESANT INSURANCE COMPANY, NA- TIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PENNSYLVANIA, NORTH RIVER INSURANCE COMPANY, ALLSTATE INSURANCE COMPANY A/S/O MARCO DEL GADO, AS SUCCESSOR TO NORTHBROOK EXCESS AND SURPLUS INSURANCE COMPANY, EMPLOY- ERS INSURANCE COMPANY OF WAUSAU, ONEBEACON AMERICA INSURANCE COMPANY, FORMERLY REFERRED TO IN THIS LITIGATION AS COMMERCIAL UNION INSURANCE COM- PANY, AETNA CASUALTY & SURETY COMPANY, GENERAL REINSURANCE CORPORATION, GOVERNMENT EMPLOYEES INSURANCE COMPANY, GRANITE STATE INSURANCE COMPA- NY, HOME INSURANCE COMPANY, INDEMNITY INSURANCE COMPANY OF NORTH AMERI- CA, INTEGRITY INSURANCE COMPANY, GREENWICH INSURANCE COMPANY, AS SUCCES- SOR TO HARBOR INSURANCE COMPANY, NATIONAL CASUALTY COMPANY, TRANSIT CAS- UALTY COMPANY, AIU INSURANCE COMPANY, CONTINENTAL CORPORATION, GOVERN- MENT EMPLOYEES INSURANCE COMPANY, GRANITE STATE INSURANCE COMPANY, HAR- BOR INSURANCE COMPANY, NATIONAL AMERICAN INSURANCE COMPANY OF CALIFORNIA, AS SUCCESSOR TO STUYVESANT INSURANCE COMPANY, NATIONAL CASUALTY COMPANY, NEW YORK PROPERTY/CASUALTY INSURANCE SECURITY FUND, AMERICAN HOME AS- SURANCE COMPANY, CENTURY INDEMNITY COMPANY,
Defendants,
OLIN-HUNT SPECIALTY PRODUCTS INCORPORATED,
Third-Party-Defendant.
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Before: HALL, LIVINGSTON, and DRONEY, Circuit Judges. __________________
Defendant-Appellant-Cross-Appellee OneBeacon American Insurance Com- pany ("OneBeacon") appeals from two final judgments entered in favor of Plaintiff-Counter-Defendant-Appellee-Cross-Appellant Olin Corporation ("Olin") in the United States District Court for the Southern District of New York (Griesa, J.). Olin cross-appeals from a grant of summary judgment in favor of OneBeacon on Olin's bad faith claim brought under Massachusetts law. Olin pursued this insurance-coverage action against its insurers, includ- ing OneBeacon, concerning environmental contamination at Olin manufac- turing sites throughout the United States. This appeal arises from proceed- ings related to five particular manufacturing sites, and requires us to deter- mine, inter alia, the proper method for allocating loss at each site and decide whether OneBeacon may reduce the limits of its liability by those of any prior insurance policies within the same layer of coverage.
AFFIRMED IN PART, VACATED IN PART, AND REMANDED.
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CRAIG C. MARTIN (Mathew E. Price, Brian S. Scar- brough, and Matthew J. Thomas, on the brief), Jen-