Quincy Mutual Fire Insurance Co. v. Borough of Bellmawr, 172 N.J. 409

Summary

The Supreme Court of New Jersey addresses whether an insurer's policy was triggered under the continuous trigger theory by a municipality's disposal of waste in a landfill before groundwater contamination began. The court also considers how liability should be allocated among insurers whose policies are triggered during progressive environmental damage. The opinion discusses the timing of property damage and the appropriate allocation methodology for coverage relating to landfill contamination.

Holdings

1. Under the continuous-trigger theory, exposure arising from the initial depositing of toxic waste into an unlined landfill constitutes the first trigger of coverage and an occurrence under the CGL policy in effect at that time, even if leachate does not reach groundwater until later.
2. When the underlying facts require precision, the Owens-Illinois pro rata allocation formula must measure the time each insurer was on the risk in days rather than automatically treating coverage as occurring in whole years.

Questions Presented

1. Whether, under New Jersey's continuous-trigger theory, the initial depositing of toxic waste into an unlined landfill triggers coverage under a CGL policy in effect at the time of dumping, even though leachate could not reach groundwater until after that policy expired.
2. Whether allocation of liability among triggered insurers should be based on years or days on the risk when an insurer's coverage period includes only part of a year.
3. Whether the matter should be remanded for allocation of liability between Century and Quincy.

Disposition

reversed_and_remanded