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New Jersey Supreme Court Holds that Non-Cumulation Clauses Cannot Apply to the Allocation of Long-Tail Claims

 By Sherilyn Pastor of McCarter & English, LLP

In Spaulding Composites Co., Inc. v. Aetna Cas. & Sur. Co., Docket No. A-88-01 (N.J. April 10, 2003), a policyholder sought coverage for environmental defense and remediation costs under its comprehensive general liability insurance policies. The primary insurer argued that its liability, under nine primary policies, was reduced by each policy's non-cumulation clause.



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