Smith v. Hughes Aircraft Co.

OVERVIEW

In 1985, approximately 2,400 residents of the City of Tucson (“the Valenzuela claims”) sued Hughes Aircraft Company (“Hughes”) for injuries arising out of contamination of their drinking water due to Hughes’ practice of discharging trichloroethylene (“TCE”) into unlined ponds. In 1991, Hughes settled the Valenzuela claims with a payment of almost $85 million. Ronald John Smith and other Lloyd’s underwriters (“Lloyd’s”), Hartford Accident and Indemnity Company (“Hart *1451 ford”), and Insurance Company of North America (“INA”) (collectively referred to as “Insurers”) brought declaratory judgment actions beginning in 1988 to determine them respective liability for the Valenzuela claims.

On September 6, 1991, the district court granted summary judgment for the Insurers with respect to policies issued between 1971 and 1985, 783 F.Supp. 1222 . On March 19, 1992, the district court declined to review a $55,777.83 award for Hartford’s deposition costs that was issued by the district court clerk. Finally, on September 16, 1992, the district court granted summary judgment for INA and Lloyd’s with respect to policies issued between 1956 and 1971. Hughes timely appealed each…