Allendale Mutual Insurance Company, a Rhode Island Corporation v. Kaiser Engineers, Division of Henry J. Kaiser Company Sergent Hauskins & Beckwith

LOGAN, Circuit Judge.

The only issue on appeal in this diversity case is whether an “actual controversy” exists within the meaning of the Declaratory Judgment Act, 28 U.S.C. § 2201, between an insurer and alleged third party tortfeasors in the following circumstances.

The plaintiff, Allendale Mutual Insurance Company, had insured United Nuclear Corporation’s uranium mill in New Mexico. An earthen dam for the mill’s tailing pond, built by defendants Kaiser Engineers and Sergent Hauskins & Beckwith, failed, causing huge losses. United Nuclear sought recovery for the loss from Allendale under the…