Roche Bros. Barrel & Drum Co. v. Employers' Fire Insurance

2 Mass. L. Rptr. 114
CourtMassachusetts Superior Court
DecidedJanuary 13, 1994
DocketNo. 91-6120
StatusPublished

This text of 2 Mass. L. Rptr. 114 (Roche Bros. Barrel & Drum Co. v. Employers' Fire Insurance) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roche Bros. Barrel & Drum Co. v. Employers' Fire Insurance, 2 Mass. L. Rptr. 114 (Mass. Ct. App. 1994).

Opinion

O'Toole, J.

By this action, the plaintiff seeks a declaration that one or both of the defendants had an obligation to provide it with a legal defense of claims made against it in litigation pending in the United States District Court (Count I) and further seeks an award of damages for their failure to have done so, such failure having been, the plaintiff alleges, a breach of contract (Count II) and a violation of G.L.c. 93A (Count III). In addition to resisting the plaintiffs claims, the defendants have counterclaimed for a declaration opposite to the one sought by the plaintiff: that they were not obliged to defend the plaintiff in the federal litigation.

The defendants have moved for summary judgment in their favor under all three counts of the complaint; the plaintiff has moved for summary judgment in its favor under Count I only. After consideration of the pleadings, the affidavits and other evidentiary materials submitted on the motions, and the briefs and arguments of the parties, the defendants’ motion is allowed, and the plaintiffs is denied.

General Background

The federal case consolidated separate actions by the United States and the Commonwealth of Massachusetts to recover the costs of cleaning up a hazardous waste disposal site in Tyngsboro, Massachusetts, known as the Charles George landfill, and for various related relief under applicable federal and state statutes. The federal action was commenced in 1985, but enforcement action involving the site went back as far as the mid-1970s, when there had been litigation brought by the Commonwealth in the Superior Court against the owners of the site.

The respective complaints in the federal action alleged that the site had been operated as a landfill between 1971 and 1983 and that “(b)etween at least 1973 and 1976 hazardous substances were disposed of at the Site.” First Amended Complaint, ¶¶40, 43, United States of America v. Charles George Trucking Co., Inc., et al., Civil Action No. 85-2463-WD, United States District Court for the District of Massachusetts.

Among the defendants in the federal litigation, in addition to the owners of the landfill, were various companies alleged by the governments to have been “generators” or “transporters” of hazardous waste that was deposited in the landfill. Under the applicable statutes, such entities would be liable for a share of the “response” and other costs associated with cleaning up the site. 42 U.S.C. §9607(a)(3), (4); G.L.c. 21E, §5(a).

[115]*115Early In 1990, several of these “generator” or “transporter” defendants filed third-party complaints for contribution or similar relief against the plaintiff here, Roche Brothers Barrel & Drum Co., Inc., alleging that it was also a generator of hazardous waste deposited at the site and that it accordingly was bound to share in the cleanup costs. In the subsequent course of events, Roche Brothers denied that it was responsible for the deposit of any hazardous waste at the Charles George landfill, but representatives of Roche Brothers did acknowledge in the course of pretrial discovery that the company did send waste materials, non-hazardous in their view, to the site for some period beginning in about 1976.

Shortly before the third-pariy complaints were filed, Roche Brothers, through its insurance agent, wrote to the defendant Commercial Union Insurance Company and requested copies of liability insurance policies that had been issued to Roche Brothers by Commercial Union or an affiliate for the period 1974-1977. Commercial Union responded that it could find no record of any policy issued to Roche Brothers. Roche Brothers itself had no copies of any policies, but after some time found reference to a policy number, SMPFBW305426, which appeared to signify a liability policy in effect from December 1975 to December 1976. Relying on this piece of information, on April 12, 1990, counsel for Roche Brothers made a formal demand that Commercial Union assume the defense of the claims made in the federal litigation. Commercial Union took the position that Roche Brothers had not shown the existence or terms of any applicable policy, and it declined to undertake the defense of the federal litigation.

About a year and a half later, in September 1991, the present suit was commenced. Shortly thereafter, Roche Brothers’ lawyer sent Commercial Union’s lawyer a group of documents apparently found in the files of Roche Brothers and its insurance agent that were said to provide evidence of the existence of insurance coverage for the third-pariy claims. From the record presented in connection with the instant motions, it appears that this was the first additional information about potential coverage sent by Roche Brothers since the mention of the policy number in the April 1990, correspondence.

The Existence and Terms of Insurance Policies

Roche Brothers is unable to produce any insurance policy that is applicable to the subject matter of the third-party complaints. What it has produced is some circumstantial evidence of the existence and, to a more limited extent, the terms of policies purchased by it in the 1970s from the defendants. That evidence — the existence and authenticity of which is itself not disputed — permits the following conclusions.

Roche Brothers purchased a “special multi-peril” insurance policy bearing the identifying number SMPFBW305426 from the defendant Employers’ Fire Insurance Company covering the period December 20, 1975 to December 20, 1978 (the “1975 policy”). That policy provided general liability coverage both for bodily injury and property damage claims. The amount of insurance provided under this coverage for property damage was $500,000 for each occurrence and $500,000 aggregate, as of July 23, 1976. The amount of such coverage provided under the policy prior to July 23, 1976, cannot be determined.

Roche Brothers purchased a “special multi-peril” insurance policy bearing the identifying number E-B-40249-56 from the Employers’ Commercial Union Insurance Company, a predecessor of the defendant Commercial Union, covering the period December 20, 1972 to December 20, 1975 (the “1972 policy”). A “special multi-peril” policy is similar to a “comprehensive general liability" policy in usually providing liability coverage for bodily injury and property damage claims against the insured. Such coverage is referred to generally as “Coverage C.” Policy number E-B-40249-56 provided Coverage C insurance, but the amount of such insurance, particularly the amount available for property damage claims, is not known.

The 1972 policy was apparently a “renewal” of, or perhaps more accurately a successor to, a policy identified by the number E-B-40159-53 (the “pre-1972 policy”). Other than a general reference to it as having been “renewed” by the 1972 policy, nothing is known about the kinds or amounts of coverage provided under the pre-1972 policy. (Judging by the numbering code used by the defendants’ group of companies, it can be concluded that the policy was issued by Employers’ Commercial Union Insurance Company.)

As part of its terms, the 1972 policy included the language contained in endorsement MLB-227, in the version revised as of August 1970. That endorsement incorporated the so-called “pollution exclusion” into the insurance contract. The endorsement provided:

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Bluebook (online)
2 Mass. L. Rptr. 114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roche-bros-barrel-drum-co-v-employers-fire-insurance-masssuperct-1994.