Nucor Corp. v. Employers Ins. Co. of Wisconsin
(United States District Court, District of Arizona, October 1, 2012)
In this case, the plaintiff, Nucor Corp., used a chemical called trichloroethylene (TCE) which infiltrated the groundwater in the Phoenix area in the 1980s. Nucor had purchased coverage from Wausau, Travelers, and Hartford to provide coverage, but there were issues over which insurer owed coverage. In 1998, there was a suit filed by Nucor to resolve discrepancies in its coverage. Those discrepancies were thought to be resolved through settlement agreements with Travelers and Hartford, and the idea that Nucor would be covered by Wausau going forward. The settlement agreements with Travelers and Hartford released them from potential future claims.
A suit was filed against Nucor in 2010 which sought damages from the groundwater contamination. Nucor informed Wausau, and a dispute arose over Wausau’s obligations which caused Nucor to file this lawsuit. Wausau counter claimed against Travelers and Hartford seeking equitable contribution. Travelers and Hartford sought dismissal based on the prior settlement agreements and releases.
Travelers and Hartford both attached copies of their settlement agreements to their motions to dismiss and argued that the agreements were central to the resolution of Wausau’s equitable contribution claim. In determining whether to incorporate the settlement agreements when analyzing the motion to dismiss, the court noted that references and allusions to the settlement agreements in Wausau’s counterclaim and answer were insufficient to justify incorporation. The court also noted that the settlement agreements were not integral to the claim itself, regardless of whether they were integral to resolving the claim.
The court went on to find that Wausau adequately stated a claim for equitable contribution against Travelers and Hartford as it alleged that Wausau, Travelers, and Hartford each issued Nucor primary insurance policies that could have been implicated in the 2010 litigation. Wausau also alleged that it has paid the costs of Nucor’s defense thus far, and that neither Travelers, nor Hartford had paid any costs. Therefore the court denied the motions to dismiss.