Port of Portland v. Water Quality Insurance Syndicate

SKOPIL, Circuit Judge:

This is an action brought by the Port of Portland (“Port”) against two of its insurers, St. Paul Fire & Marine Insurance Company (“St. Paul”) and the Water Quality Insurance Syndicate (“WQIS”). The Port seeks to recover costs and expenses expended in containing and cleaning up an oil slick on the Willamette River. The slick occurred when the Port’s dredge, the OREGON, sank at its moorings in the Portland harbor. More than 65,000 gallons of diesel fuel plus various lubricating oils were aboard. The Port contracted with third parties to contain and clean up the pollution…