olin corporation v. insurance company of north america (appeal) opinion

8/3/2019 OLIN CORPORATION v. INSURANCE COMPANY OF NORTH AMERICA (Appeal) Opinion

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1USDc SONY'D O C U I v t E ~ 'T t"ELECrRONICA.LLY Fn.EDDOC#;UNITED STATES DISTRICT COURT DATE FiiD:l 0I (51(ISOUTHERN DISTRICT OF NEW YORK

------------------------------------------------------------ J{ OLIN CORPORATION,Plaintiff, 84. Civ. 1968 (TPG)

- against ..PROPOSED RULE 54(b) JUDGMENTINSURANCE COMPANY OF NORTHAMERICA, AL.,Defendants.

------------------------------------------------------------ J{

After the Court's initial rulings during a hearing held on March 29, 2011, a jury trialbetween April 4, 2011 and April 11, 2011, this action proceeded to a bench trial held on May 3,2011 through May 6, 2011, and on May 31,2011 through June 3, 2011, as well as a subsequenthearing on September 8, 2011, the Honorable Thomas P. Griesa presiding, to adjudicate issuesconcerning the entitlement of the plaintiff, Olin Corporation ("Olin"), to recover on policies ofinsurance sold to Olin by defendant Century Indemnity Company as successor to InsuranceCompany of North America ("INA"), in respect of costs and liabilities incurred by Olin inconnection with environmental contamination at the Morgan Hill Site located in Morgan Hill,California (the "Morgan Hill Site"). The parties having appeared by their respective attorneys;and proof having been presented on behalf of Olin and INA; the Court having applied therelevant rulings reached during the above-mentioned hearings, jury trial, and bench trial to thedefense costs incurred at the Morgan Hill Site, and having expressly determined that there is nojust reason for delay, and having expressly directed that final judgment upon certain issues beentered, it is hereby

ORDERED, ADJUDGED AND DECREED as follows:

SLC-645 1482-2

Case 1:84-cv-01968-TPG Document 1649 Filed 10/14/11 Page 1 of 9


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1. The Court hereby adopts and incorporates by reference, as if set forth in theirentirety, the rulings issued in this case addressing Olin's insurance coverage claim against INAwith respect to the Morgan Hill Site, except to the extent such rulings were later amended ormodified.

2. Olin offered into evidence Exhibit PX 1386 documenting $9,022,681.05 in third-party litigation costs in connection with the Morgan Hill Site. Olin has agreed to withdraw$451.46 from this amount and has therefore sought $9,022,229.59 in recoverable defense costsfrom INA in connection with third-party litigation.

3. INA has raised certain challenges to the amount of defense costs in Ol in's claim.Olin and INA have now reached an agreement and stipulated that Olin incurred $8.7 million indefense costs in connection with the third-party litigation. Olin maintains that it is entitled torecover the $8.7 million in stipulated third-party litigation costs in connection with the MorganHill Site under the INA Policies. Considering and giving effect to the Court 's rulings, the Courtfinds that Olin is entitled to recover from INA the stipulated third-party litigation costs in theamount of $8.7 million pursuant to the terms of the INA Policies.

4. For all of the reasons enumerated at the hearing of September 8, 2011, the Courtdetermines that Olin is entitled, under N.Y. CPLR 5001(a), to recover prejudgment interest onthe $8.7 million in third-party litigation costs owed under the INA Policies in respect of theMorgan Hill Site.

5. In accordance with all of the Court's foregoing rulings, including those articulatedon the record on June 3, 2011, and September 8, 2011, the Court hereby expressly directs entryof Judgment for Olin and against INA for third-party litigation costs and prejudgment interest (asprovided for under N.Y. CPLR 5001(a)) as calculated and set forth in the attached Exhibit A,

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SLC-6451482-2

http:///reader/full/9,022,681.05http:///reader/full/9,022,229.59http:///reader/full/9,022,681.05http:///reader/full/9,022,229.59


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awarding Olin $8.7 million in principal and $5,184,451.66 in interest through September 29,2011, with an additional $2,145.21 per day from September 29,2011 until this Judgmentbecomes final. This judgment addresses only Olin 's claims against Defendant INA with respectto the Morgan Hill Site, which are fully resolved as the result of the Court's rulings.

6. Under Rule 54(b) of the Federal Rules ofCivil Procedure, the Court expresslydetermines that there is no just reason for delay in entering final judgment as set forth above.First, Ol in's claims against INA with respect to the Morgan Hill Site presented distinct factualand legal issues to the Court. Second, it is in the interest of the parties and of judicial efficiencyto resolve finally the dispute between Olin and INA as to the Morgan Hill Site. Now that Olin'sclaims and INA's defenses respecting the Morgan Hill Site have been resolved by rulings, trial,or summary judgment, it would be impractical and unfair to all concerned to place those resolvedissues on hold until all disputes concerning the remaining sites are resolved. Third, in apparentrecognition of these principles, the Second Circuit has already approved of entry of various 54(b)judgments in this litigation at particular sites in this case. See Olin Corp. v. CertainUnderwriters at Lloyd's London and London Market Ins. Cos., 347 Fed. App'x 622 (2d Cir.2009) (taking jurisdiction of 54(b) judgment); Olin Corp. v. Insurance Company ofNorthAmerica, 221 F.3d 307 (2d Cir. 2000) (same); Olin Corp. v. Insurance Company ofNorthA m e r i c ~ 966 F.2d 718, 720 (2d Cir. 1992) (same); Olin Corp. v. Insurance Company ofNorthAmerica, 929 F.2d 62,63 (2d Cir. 1991) (same). This judgment is consistent with the prior Rule54(b) judgments and is entered for similar reasons.

3SLC-645 1482-2

http:///reader/full/5,184,451.66http:///reader/full/2,145.21http:///reader/full/5,184,451.66http:///reader/full/2,145.21


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IT IS SO ORDERED,Dated: .Septem.beE _ , 201 1_

Honorable Thomas P. Oriesa

c J 17) 2--0 r I United States District Judge

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SLC-6451482-2



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0lIft .. _ iiQigon HIII- Thinj Party I.JiIaaIIcn 1# of Days From InIIoice (except Or Mactec) 1# of [)aye From Invoice

fOr MactecTola! Adjusted Amount(BefOre Interest)Date of CalculadonAnnual Interest Rate

45 45

$ 8,100,000 9129120119.0%

Totel AdJusted Amount (Before Intorestl $ 8,700,000.00Total Amount of Interest 5,184,451.66Total Adjusted Amount PlusIntereet on Adjuated Amount $13,884,451.66

http:///reader/full/8,700,000.00http:///reader/full/5,184,451.66http:///reader/full/13,884,451.66http:///reader/full/8,700,000.00http:///reader/full/5,184,451.66http:///reader/full/13,884,451.66


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Olifty.1NA14",gon t f ~ Third Pat\vUIgaIIoneo.;.

/I of Days From Invoice (exceptfor Mactec) /I of Days From Invoice for MactecTotal AdjU$ted Amount(Before Interest)Date of Calculation

IAnnual ln_ Rate

4545

$ a.700.000 9129/2011

9.0%

Total Adjusted Amount (Before lmerest) $ 8.700,000.00Total Amount of Interest 5,184.451.66Total Adjusted Amount PI....Intereston Adjusted Amount $13,884.451.66

http:///reader/full/8.700,000.00http:///reader/full/5,184.451.66http:///reader/full/13,884.451.66http:///reader/full/13,884.451.66http:///reader/full/8.700,000.00http:///reader/full/5,184.451.66http:///reader/full/13,884.451.66


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OIlnv.INAlIOIgomHII - Third Party liIigoIonCools

# of Days From nvoice (except for Aactec)1# of Days FrOll1 Invoice for MactecTotal Adjusted Amount(Before In_IDele of CalculationAnnual Interest Rate

45

45 $ 8,700,000

912912D1111.0%

Total Adjusted Amount (Before Interest) $ 8,700,000,00Total AmOunt of Interest 5,184,451.66Total Adjllllted Amount Plusintereston AdJU$led Amount S 13,884.451.66

http:///reader/full/5,184,451.66http:///reader/full/13,884.451.66http:///reader/full/5,184,451.66http:///reader/full/13,884.451.66


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Otinv.tHAMorgan HI Third Patiy Li gationCcsIs

'1# of DiysFrom Invoice (except for Mactec) 1# of Days From kIvOice for Mactec'Total AdjuSted Amount(Selolelnterest)Date of Galcul.tionAnnual Interest Rat.

45 45

$ 8,700,000 912912011 9.0%

Total Adjusted Amou nt (Before Inlerest) $ 8,700,000.00Total Amount of nterest 5,184,451,66Totel AdjuSted Amount PlusInterest on Adjusted Amount $13.884,451.66

http:///reader/full/8,700,000.00http:///reader/full/13.884,451.66http:///reader/full/8,700,000.00http:///reader/full/13.884,451.66


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OJinv.tNAJ , I o r g a n H i l l - T h i d P 8 l 1 y I . i t i g a l i t m ~

# of Days From nvoice (except for Mactec) # of Days From Involc& for M.ctecTolal AdjuslOO Amount(l3ofore Interest)Dale of Calculation

Annuallnlereet Rale

45

45

$ 8,700,00(1 9/29/20119.0%

TolII Adjusted Amount (Betono Interest) $ 8,700,000.00Total Amount of Intereal 5,184,451.66Total Adjusted Amount PlusIntaresl on Adjusted Amount $13,884,451.66

http:///reader/full/8,700,000.00http:///reader/full/5,184,451.66http:///reader/full/13,884,451.66http:///reader/full/8,700,000.00http:///reader/full/5,184,451.66http:///reader/full/13,884,451.66


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Case 1:84-cv-01968-TPG Document 1649-1 Filed 10/14/11 Page 1 of 5


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olin corporation v. insurance company of north america (appeal) opinion

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