State v. Underwriters at Lloyds, London

OPINION

MATTHEWS, Chief Justice.

This appeal raises the question whether an airline’s premises-operations insurance provides coverage for a taxiway accident.

I. INTRODUCTION

In 1975, a Boeing 747 aircraft owned by Japan Airlines (JAL) was damaged when it slid off an icy taxiway at Anchorage International Airport. The cost of repairing the aircraft was nearly $20 million. JAL and its property insurers sued the State of Alaska, the owner of the airport, claiming that the accident resulted from the faulty design and. maintenance of the taxiway. 1 The state tendered its defense to JAL’s liability…