Continental Casualty Co. v. Fibreboard Corp.

On remand from the Supreme Court, we consider whether this appeal from the denial of declaratory relief has been rendered moot by the settlement of the lawsuits that prompted the request for such relief, and, if so, whether the district court’s judgment ought to be vacated. — U.S. -, 113 S.Ct. 399 , 121 L.Ed.2d 325 .

I

Continental Casualty Co. (“Continental”) brought this suit seeking a declaratory judgment that, under the insurance policy it had issued to Fibreboard Corporation (“Fibre-board”), it was not obligated to indemnify Fibreboard for punitive damages. Specifically, Continental sought a declaration that it was not liable for the punitive damages awarded against Fibreboard in two lawsuits, one in Texas (the Cimino action), the other in West Virginia (the In re Asbestos cases), involving asbestos-related injuries.

The federal district court held that Continental was not entitled to the declaratory relief it requested. See Continental Cas. Co . v. Fibreboard Corp., 762 F.Supp. 1368 (N.D.Cal.1991). After a thorough analysis of the choice of law problems presented, and a careful examination of the substantive law and public policy of California; Texas, and West Virginia…