American Home Assurance Co. v. Everest Reinsurance Co.

In 1993, National Union and its affiliates settled massive coverage litigation arising from the underlying insured’s manufacture of the contaminant polychlorinated biphenyl (PCB) continuously from 1929 to 1971 at 80 sites around the country (the 1993 settlement). The 1993 settlement agreement had two parts: a cash payment to resolve all existing and future governmental clean-up claims at the 80 sites, and an agreement as to how any future private bodily injury or property damage claims at those sites would be handled. Several years after the 1993 settlement was consummated, the underlying…