{ "id": 1155833, "name": "GASTON COUNTY DYEING MACHINE COMPANY, TAX I.D. NO. 56-02-32800, Plaintiff v. NORTHFIELD INSURANCE COMPANY, LIBERTY MUTUAL INSURANCE COMPANY, ROSENMUND, INC., ALLENDALE MUTUAL INSURANCE COMPANY, STERLING WINTHROP, INC., and STERLING PHARMACEUTICALS, INC., AND INTERNATIONAL INSURANCE COMPANY, Defendants, and UNITED CAPITOL INSURANCE COMPANY, Intervenor", "name_abbreviation": "Gaston County Dyeing Machine Co. v. Northfield Insurance", "decision_date": "2000-02-04", "docket_number": "No. 10PA99", "first_page": "293", "last_page": "309", "citations": [ { "type": "official", "cite": "351 N.C. 293" } ], "court": { "name_abbreviation": "N.C.", "id": 9292, "name": "Supreme Court of North Carolina" }, "jurisdiction": { "id": 5, "name_long": "North Carolina", "name": "N.C." }, "cites_to": [ { "cite": "509 S.E.2d 778", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1998, "opinion_index": -1 }, { "cite": "131 N.C. App. 438", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 11201092 ], "year": 1998, "opinion_index": -1, "case_paths": [ "/nc-app/131/0438-01" ] }, { "cite": "409 S.E.2d 692", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1991, "opinion_index": -1 }, { "cite": "104 N.C. App. 312", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 8521555 ], "year": 1991, "opinion_index": -1, "case_paths": [ "/nc-app/104/0312-01" ] }, { "cite": "361 S.E.2d 403", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1987, "pin_cites": [ { "page": "408", "parenthetical": "noting North Carolina rule of construing insurance policies independent of one another" } ], "opinion_index": 0 }, { "cite": "87 N.C. App. 428", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 8358515 ], "year": 1987, "pin_cites": [ { "page": "436", "parenthetical": "noting North Carolina rule of construing insurance policies independent of one another" } ], "opinion_index": 0, "case_paths": [ "/nc-app/87/0428-01" ] }, { "cite": "152 S.E.2d 436", "category": "reporters:state_regional", "reporter": "S.E.2d", "weight": 3, "year": 1967, "pin_cites": [ { "page": "440" }, { "page": "440-41" } ], "opinion_index": 0 }, { "cite": "269 N.C. 341", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 8563605 ], "weight": 2, "year": 1967, "pin_cites": [ { "page": "346-47" } ], "opinion_index": 0, "case_paths": [ "/nc/269/0341-01" ] }, { "cite": "420 S.E.2d 826", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1992, "opinion_index": 0 }, { "cite": "332 N.C. 479", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 2503233 ], "year": 1992, "opinion_index": 0, "case_paths": [ "/nc/332/0479-01" ] }, { "cite": "727 F. Supp. 1524", "category": "reporters:federal", "reporter": "F. Supp.", "case_ids": [ 4062455 ], "year": 1989, "opinion_index": 0, "case_paths": [ "/f-supp/727/1524-01" ] }, { "cite": "724 F. Supp. 474", "category": "reporters:federal", "reporter": "F. Supp.", "year": 1989, "opinion_index": 0 }, { "cite": "388 S.E.2d 557", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1990, "pin_cites": [ { "page": "563" } ], "opinion_index": 0 }, { "cite": "326 N.C. 133", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 5309422 ], "year": 1990, "pin_cites": [ { "page": "142" } ], "opinion_index": 0, "case_paths": [ "/nc/326/0133-01" ] }, { "cite": "246 S.E.2d 773", "category": "reporters:state_regional", "reporter": "S.E.2d", "weight": 3, "year": 1978, "pin_cites": [ { "page": "777" }, { "page": "777" }, { "page": "777" } ], "opinion_index": 0 }, { "cite": "295 N.C. 500", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 8564714 ], "weight": 3, "year": 1978, "pin_cites": [ { "page": "505-06" }, { "page": "505-06" }, { "page": "506" } ], "opinion_index": 0, "case_paths": [ "/nc/295/0500-01" ] }, { "cite": "348 S.E.2d 794", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1986, "pin_cites": [ { "page": "796" } ], "opinion_index": 0 }, { "cite": "318 N.C. 378", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 4736888 ], "year": 1986, "pin_cites": [ { "page": "380" } ], "opinion_index": 0, "case_paths": [ "/nc/318/0378-01" ] }, { "cite": "409 S.E.2d 692", "category": "reporters:state_regional", "reporter": "S.E.2d", "weight": 2, "year": 1991, "pin_cites": [ { "page": "696" } ], "opinion_index": 0 }, { "cite": "104 N.C. App. 312", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 8521555 ], "year": 1991, "opinion_index": 0, "case_paths": [ "/nc-app/104/0312-01" ] } ], "analysis": { "cardinality": 1005, "char_count": 37569, "ocr_confidence": 0.769, "pagerank": { "raw": 8.09827099466867e-07, "percentile": 0.9741446315982129 }, "sha256": "8bc395bde3d02c62f2f0cbfd256fa73a7caeb71abcd0e4985b1844dcb7b9a457", "simhash": "1:532740795675b5ea", "word_count": 5878 }, "last_updated": "2023-07-14T19:38:07.529951+00:00", "provenance": { "date_added": "2019-08-29", "source": "Harvard", "batch": "2018" }, "casebody": { "judges": [ "Justice Martin did not participate in the consideration or decision of this case." ], "parties": [ "GASTON COUNTY DYEING MACHINE COMPANY, TAX I.D. NO. 56-02-32800, Plaintiff v. NORTHFIELD INSURANCE COMPANY, LIBERTY MUTUAL INSURANCE COMPANY, ROSENMUND, INC., ALLENDALE MUTUAL INSURANCE COMPANY, STERLING WINTHROP, INC., and STERLING PHARMACEUTICALS, INC., AND INTERNATIONAL INSURANCE COMPANY, Defendants, and UNITED CAPITOL INSURANCE COMPANY, Intervenor" ], "opinions": [ { "text": "FRYE, Chief Justice.\nIn this case, the trial court reformed primary and excess policies covering plaintiff so as to afford full coverage to defendant Rosenmund, Inc. (Rosenmund); applied the \u201cinjury-in-fact\u201d date in determining when damage to property occurred; concluded that the applicable policy period was a one year period beginning 1 July 1991; and ruled that the policy issued by intervenor was excess to all other coverage available to Rosenmund. The Court of Appeals affirmed in part and reversed in part the trial court\u2019s order. We allowed discretionary review to determine the correctness of the Court of Appeals\u2019 decision.\nThis case arises out of a products liability action that was originally filed in the United States District Court for the District of Puerto Rico on 17 December 1992. Sterling Pharmaceuticals, Inc. (Sterling); Sterling Winthrop, Inc.; and Allendale Mutual Insurance Company filed the underlying action to recover damages in excess of $20 million from Gaston County Dyeing Machine Company (Gaston), Rosenmund, and their insurers. The original complaint alleged defects in the design and manufacture of pressure vessels fabricated by Gaston for Rosenmund and sold by Rosenmund to Sterling for use in production of contrast media dyes for diagnostic medical imaging. On 21 June 1992, Sterling modified the production process, increasing the operating pressure in one of the pressure vessels. On 31 August 1992, Sterling discovered that ethylene glycol, a chemical used in connection with the heating process, had leaked into the vessel and contaminated over sixty tons of the contrast media dye.\nLiberty Mutual Insurance Company (Liberty Mutual), Northfield Insurance Company (Northfield), and International Insurance Company (International) had issued policies insuring Gaston effective for the policy periods 1 July 1991 to 1 July 1992 and 1 July 1992 to 1 July 1993. For each policy period, Liberty Mutual issued to Gaston a comprehensive general liability (CGL) policy providing $1 million in primary coverage per occurrence and a commercial umbrella excess liability policy providing $1 million coverage per occurrence. Rosenmund purported to be an additional named insured on the Liberty Mutual policies. Northfield issued to Gaston commercial excess liability policies providing $5 million coverage for the 1991-92 policy period and $9 million for the 1992-93 policy period. International issued to Gaston commercial excess liability policies providing $9 million coverage for the 1991-92 policy period and $5 million for the 1992-93 policy period. The Liberty Mutual, Northfield, and International policies are all \u201coccurrence-based\u201d policies, and the Northfield and International excess policies \u201cfollow the form\u201d of the Liberty Mutual umbrella policies. United Capital Insurance Company (United) issued to Rosenmund a separate CGL policy providing $2 million coverage on a \u201cclaims-made\u201d basis for claims reported during the 4 October 1991 to 4 October 1992 policy period.\nIn February 1994, Gaston brought this action for declaratory judgment against all its insurers, the plaintiffs from the underlying action, and Rosenmund. As an additional insurer for Rosenmund, United was allowed to intervene. Northfield filed a parallel declaratory judgment action in Puerto Rico.\nLiberty Mutual provided defense to Rosenmund in the underlying action from 8 July 1993 until 23 August 1993, when Liberty Mutual withdrew after determining that the \u201cadditional insured\u201d endorsements of the Gaston policies did not cover Rosenmund for products liability. United assumed Rosenmund\u2019s defense in. the underlying action under its 4 October 1991 to 4 October 1992 CGL policy until 26 January 1996, when Liberty Mutual resumed Rosenmund\u2019s defense pursuant to a partial settlement agreement between the two parties.\nLater in 1995, the underlying action was resolved by settlement agreement, and Gaston and Rosenmund dismissed their claims against the insurers. The four insurance carriers contributed to a settlement fund of $11 million as follows: Liberty Mutual, $2 million; United, $2 million; Northfield, $5 million; and International, $2 million. Pursuant to a stipulation of the insurers, the following issues were reserved for judicial determination: choice of law and forum; trigger of coverage; priority of coverage; allocation of payments among insurers; and whether Rosenmund was afforded the same coverage as Gaston under the Liberty Mutual, International, and Northfield policies.\nIn 1996, following settlement of the underlying action, Liberty Mutual, International, and United filed motions for summary judgmerit in the North Carolina declaratory judgment action. The summary judgment motions were heard at the 5 December 1996 Civil Session of Superior Court, Mecklenburg County, and an additional hearing was held on 17 January 1997.\nAfter determining that there were no issues of material fact and that North Carolina law was applicable to all issues, the trial court found as follows:\n4. . . . [0]n June 21, 1992 damage occurred to products being manufactured by Sterling Pharmaceuticals as the result of pressure vessel leakage, and that damage continued to result from the same or substantially the same leaking condition from June 21, 1992 until discovery of the damage on August 31, 1992.\n5. ... [T]here was one \u201coccurrence\u201d as that term is used in all applicable insurance policies.\n6. . . . [T]he \u201coccurrence\u201d of damages in this case took place on June 21, 1992 when the leak damage commenced.\n7. ... [T]he damages in this case resulted from continuous or repeated exposure to substantially the same general harmful conditions, i[.]e., pressure vessel leakage resulting in the contamination of pharmaceutical dye with ethylene glycol during the manufacturing process at Sterling Pharmaceuticals.\n8. . . . [T]he date upon which damage occurred can be established without question or uncertainty even though the existence of the damage was not immediately discovered. Under these circumstances, the Court finds that applicable North Carolina law is that the \u201cinjury-in-fact\u201d that took place on June 21, 1992 triggers the coverages applicable on that date and that the liability of the respective insurance carriers is for the coverages applicable on June 21, 1992 ....\n9. ... [T]he Liberty Mutual policies, the Northfield policy, and the International policy for the period July 1, 1992 to July 1, 1993 are not applicable to the loss in question.\n12. ... Rosenmund is entitled to coverage for the claims of Sterling Pharmaceuticals as an additional insured under the Liberty Mutual primary and excess policies; as such, Rosenmund is also entitled to full coverage for the claims of Sterling Pharmaceuticals] under the Northfield and International... policies which the Court finds follow form to the Liberty Mutual excess policies.\n13. ... [T]he policies of insurance issued by Liberty Mutual, Northfield, and International are \u201coccurrence\u201d policies, while the policy of insurance issued by United Capitol is a \u201cclaims made\u201d policy. The facts are undisputed that the claim made in this case was during the pendency of the United Capitol policy that provided coverage from a period of October 4, 1991 to October 4, 1992. It is undisputed that not only did all damages take place during that period of time, but claims were also duly made to United Capitol during that same policy period. However, the Court finds that the United Capitol policy is excess above the other coverage available to Rosenmund, therefore its coverage is not reached.\n15. ... [T]he coverage obligations of the carriers for funding the $11 million settlement on behalf of Gaston and Rosenmund are as follows:\na. Liberty Mutual \u2014 primary coverage \u2014 $1 million\nb. Liberty Mutual \u2014 excess coverage \u2014 $1 million\nc. Northfield \u2014 $5 million\nd. International n/k/a Westchester- \u2014 $4 million\n16. ... United Capitol is entitled to reformation of the Liberty Mutual policies to provide Rosenmund with product liability coverage and to a declaration of coverage for Rosenmund for the claims of Sterling Pharmaceuticals as an additional insured under the Liberty Mutual primary and excess policies and under the Northfield and International n/k/a Westchester policies, which follow form to the Liberty Mutual excess policies; and that United Capitol\u2019s policy is excess over all other coverages available to Rosenmund. Accordingly, Liberty Mutual must pay all costs of defense for Rosenmund, United Capitol is entitled to reimbursement from Liberty Mutual for its costs of defending Rosenmund, and United Capitol is entitled to reimbursement from International n/k/a Westchester for its contribution toward the settlement of Sterling Pharmaceuticals\u2019 claims.\nBased on its findings and conclusions, the trial court ordered that United recover $453,443 from Liberty Mutual in defense costs for Rosenmund and $2 million from International, plus interest on both amounts. From this order, International and Liberty Mutual appealed.\nThe Court of Appeals affirmed that part of the trial court\u2019s order reforming the primary and excess policies covering Gaston so as to afford Rosenmund full coverage. However, the Court of Appeals reversed those portions of the trial court\u2019s order (1) applying the \u201cinjury-in-fact\u201d date in determining when the damage to Sterling\u2019s property occurred, (2) concluding that the applicable policy period was 1 July 1991 to 1 July 1992 rather than 1 July 1992 to 1 July 1993, and (3) ruling that the United policy was excess to all other coverage available to Rosenmund. This Court allowed petitions for discretionary review by Northfield and United on 8 April 1999.\nWe must decide the following issues raised by the two petitions for discretionary review: whether application of an \u201cinjury-in-fact\u201d or a \u201cdate-of-discovery\u201d trigger of coverage is appropriate where the date of property damage is known and undisputed; whether there was a single occurrence or multiple occurrences triggering the first policy year, the second policy year, or both; and whether Rosenmund\u2019s own policy issued by United should be considered excess to or contributing with the Liberty Mutual and International policies issued to Gaston and under which Rosenmund was an additional insured. For the reasons stated below, we reverse the Court of Appeals as to these issues.\nWe begin by noting the well-established principle that \u201can insurance policy is a contract and its provisions govern the rights and duties of the parties thereto.\u201d Fidelity Bankers Life Ins. Co. v. Dortch, 318 N.C. 378, 380, 348 S.E.2d 794, 796 (1986). The rules of construction for insurance policies are likewise familiar:\nAs with all contracts, the goal of construction is to arrive at the intent of the parties when the policy was issued. Where a policy defines a term, that definition is to be used. If no definition is given, non-technical words are to be given their meaning in ordinary speech, unless the context clearly indicates another meaning was intended. The various terms of the policy are to be harmoniously construed, and if possible, every word and every provision is to be given effect. If, however, the meaning of words or the effect of provisions is uncertain or capable of several reasonable interpretations, the doubts will be resolved against the insurance company and in favor of the policyholder. Whereas, if the meaning of the policy is clear and only one reasonable interpretation exists, the courts must enforce the contract as written; they may not, under the guise of construing an ambiguous term, rewrite the contract or impose liabilities on the parties not bargained for and found therein.\nWoods v. Nationwide Mut. Ins. Co., 295 N.C. 500, 505-06, 246 S.E.2d 773, 777 (1978); see also C.D. Spangler Constr. Co. v. Industrial Crankshaft & Eng\u2019g Co., 326 N.C. 133, 142, 388 S.E.2d 557, 563 (1990). We apply these principles to the insurance policies in this case.\nThe Liberty Mutual CGL policies issued to Gaston contain the following coverage provisions:\nSECTION I \u2014 COVERAGES\nCOVERAGE A. BODILY INJURY AND PROPERTY DAMAGE LIABILITY\n1. Insuring Agreement.\na. We will pay those sums that the insured becomes legally obligated to pay as damages because of \u201cbodily injury\u201d or \u201cproperty damage\u201d to which this insurance applies. . . .\nb. This insurance applies to \u201cbodily injury\u201d and \u201cproperty damage\u201d only if:\n(1) The \u201cbodily injury\u201d or \u201cproperty damage\u201d is caused by an \u201coccurrence\u201d that takes place in the \u201ccoverage territory\u201d; and\n(2) The \u201cbodily injury\u201d or \u201cproperty damage\u201d occurs during the policy period.\nThe Liberty Mutual CGL policies also contain the following definitions in Section V:\n9. \u201cOccurrence\u201d means an accident, including continuous or repeated exposure to substantially the same general harmful conditions.\n12. \u201cProperty damage\u201d means:\na. Physical injury to tangible property, including all resulting loss of use of that property. All such loss of use shall be deemed to occur at the time of the physical injury that caused it; or\nb. Loss of use of tangible property that is not physically injured. All such loss shall be deemed to occur at the time of the \u201coccurrence\u201d that caused it.\nThe Liberty Mutual umbrella excess liability policies contain the following provisions:\nSECTION I \u2014 COVERAGE\u2014EXCESS LIABILITY\n1. Insuring Agreement.\na. We will pay those sums in excess of the retained limit that the insured becomes legally obligated to pay as damages because of:\n(1) bodily injury;\n(2) property damage;\nto which this policy applies and caused by an occurrence.\nSECTION IV \u2014 DEFINITIONS\n5. Occurrence means:\na. With respect to bodily injury or property damage[]: an accident, including continuous or repeated exposure to substantially the same harmful conditions ....\n9. Property damage means:\na. Physical injury to tangible property, including all resulting loss of use of that property ....\nThe International and Northfield excess liability policies provided coverage for amounts in excess of coverage in the underlying Liberty Mutual policies and \u201cfollow the form\u201d of the Liberty Mutual umbrella excess liability policy.\nWe begin by examining the two related issues regarding trigger of coverage. There is no dispute that the contamination of Sterling\u2019s contrast media dye commenced on 21 June 1992, as a result of the rupture of the pressure vessel and subsequent leakage, and continued until discovery on 31 August 1992. Applying the principles of insurance contract interpretation set forth above, we conclude that the trial court correctly determined that there was one \u201coccurrence\u201d that took place on 21 June 1992 when the leak commenced.\nUnder the insurance policies at issue in this case, coverage is triggered by \u201cproperty damage\u201d when the property damage is caused by an \u201coccurrence\u201d and when the property damage occurs during the policy period. The property damage alleged in this case was the contamination of sixty tons of Iohexol, a contrast media dye used for diagnostic medical imaging, valued in excess of $20 million. The applicable Liberty Mutual primary policy defines an \u201coccurrence\u201d as \u201can accident, including continuous or repeated exposure to substantially the same general harmful conditions.\u201d Because the term \u201coccurrence\u201d is defined in the policy, we use the specific definition.\nHowever, nontechnical words are to be given their ordinary meaning. An accident is generally considered to be an unplanned and unforeseen happening or event, usually with unfortunate consequences. See, e.g., Merriam-Webster\u2019s Collegiate Dictionary 7 (10th ed. 1993); Black\u2019s Law Dictionary 15 (7th ed. 1999). The sudden, unexpected leakage from the pressure vessel, causing release of a contaminant into Sterling\u2019s dye product, certainly comes within the ordinary meaning of the term \u201caccident.\u201d Further, there is no dispute that all the damage occurred as a result of exposure to the same harmful condition \u2014 continued leakage of the contaminant into the dye product. Thus, under the plain language of the insurance policies, the property damage was caused by an occurrence, and property damage occurred on 21 June 1992 when the pressure vessel ruptured. Stated differently, the \u201cinjury-in-fact\u201d in this case can be determined with certainty because the cause of the property damage occurred and property damage resulted on 21 June 1992. Therefore, the 1 July 1991 to 1 July 1992 policy period is triggered, even though the contamination continued until discovery of the leak on 31 August 1992.\nAlthough our Court of Appeals has addressed the trigger of coverage issue, it is an issue of first impression for this Court. We conclude that where the date of the injury-in-fact can be known with certainty, the insurance policy or policies on the risk on that date are triggered. This interpretation is logical and true to the policy language. Further, although other jurisdictions have adopted varied approaches in determining the appropriate trigger of coverage, the injury-in-fact approach is widely accepted. See, e.g., Dow Chem. Co. v. Associated Indem. Corp., 724 F. Supp. 474, op. supplemented, 727 F. Supp. 1524 (E.D. Mich. 1989).\nWe find unconvincing the approach adopted in West Am. Ins. Co. v. Tufco Flooring East, 104 N.C. App. 312, 409 S.E.2d 692 (1991), disc. rev. improvidently allowed, 332 N.C. 479, 420 S.E.2d 826 (1992), and relied upon by the Court of Appeals in the instant case. In Tufco, the Court of Appeals analyzed a CGL policy containing a pollution-exclusion clause to determine whether coverage was available for damage to chicken stored in a cooler and contaminated with styrene released during floor resurfacing work. The Court of Appeals stated four different bases upon which to affirm the trial court\u2019s ruling that the pollution-exclusion clause did not exclude coverage. One of the reasons given by the Court of Appeals was its conclusion that \u201cfor insurance purposes property damage \u2018occurs\u2019 when it is first discovered or manifested.\u201d Id. at 318, 409 S.E.2d at 696. As discussed above, it is well-established North Carolina law that the language of the insurance policy controls, and in the instant case, we determine that property damage occurred for purposes of the applicable policies at the time of the injury-in-fact. To the extent that Tufco purports to establish a bright-line rule that property damage occurs \u201cfor insurance purposes\u201d at the time of manifestation or on the date of discovery, that decision is overruled.\nInternational asserts that if the manifestation or date-of-discovery approach is not accepted, this Court should find that both policy periods are triggered under a \u201ccontinuous\u201d or \u201cmultiple trigger\u201d theory. We decline to do so. In determining whether there was a single occurrence or multiple occurrences, we look to the cause of the property damage rather than to the effect. As noted previously, an \u201coccurrence\u201d is an accident, \u201cincluding continuous or repeated exposure to substantially the same general harmful conditions.\u201d In this case, the rupture of the pressure vessel caused all of the ensuing property damage, even though the damage continued over time, contaminating multiple dye lots and extending over two policy periods. Therefore, when, as in this case, the accident that causes an injury-in-fact occurs on a date certain and all subsequent damages flow from the single event, there is but a single occurrence; and only policies on the risk on the date of the injury-causing event are triggered. We believe this interpretation is the most faithful to the language and terms of the insurance policy.\nFor the foregoing reasons, we therefore reverse the Court of Appeals and affirm the decision of the trial court \u201cthat the \u2018injury-in-fact\u2019 that took place on June 21, 1992 triggers the coverages applicable on that date and that the liability of the respective insurance carriers is for the coverages applicable on June 21, 1992.\u201d\nNext, we note again the trial court\u2019s ruling that Rosenmund was entitled to reformation of the Liberty Mutual primary and excess policies to provide it with products liability coverage and that Rosenmund was also an additional insured under the International and Northfield excess policies, which follow the form of the Liberty Mutual policies. In its new brief to this Court, Northfield asserts that this issue was decided in error. However, Northfield did not present this issue in its petition for discretionary review, nor has the issue been raised for review by any other party. Further, Northfield simply announces that it \u201creaffirms that it joins the positions of Liberty Mutual and International regarding this issue, as stated in the Court of Appeals briefs,\u201d and does not make an argument or cite authority in support of its position. As this issue is not properly before this Court for review, the decision of the Court of Appeals on the issue of reformation remains undisturbed.\nFinally, the trial court ruled that United\u2019s policy is excess over all other coverages available to Rosenmund and, therefore, ordered Liberty Mutual to reimburse United for the costs of defending Rosenmund and ordered International to reimburse United for its contribution to the settlement of the Sterling claims. Because the Court of Appeals concluded that the 1992-93 policy year was triggered, it held that the trial court erred in ruling that United\u2019s policy was excess. We now must interpret the applicable policies in view of our decision that coverage was triggered in the 1991-92 policy period by a single occurrence. For the reasons that follow, we reverse the Court of Appeals as to this final issue.\nAs discussed above, Liberty Mutual issued to Gaston \u201coccurrence-based\u201d policies for the policy year 1 July 1991 to 1 July 1992 that provided primary and umbrella excess insurance coverage to Rosenmund as an additional insured. International also issued an occurrence-based policy for the 1 July 1991 to 1 July 1992 policy year that provided excess insurance to Rosenmund as an additional insured. These policies were triggered by the property damage that occurred as a result of the 21 June 1992 pressure vessel leak. Additionally, United issued to Rosenmund a \u201cclaims-made\u201d policy that provided coverage for certain claims made during its 4 October 1991 to 4 October 1992 policy year. The claim in this case, based on the pressure vessel leak, was made during this policy period.\nUnited contends that its claims-made policy is excess to ail occurrence-based policies providing coverage for the 1991-92 policy year, while Liberty Mutual and International argue that United\u2019s policy provides primary coverage and that United is therefore not entitled to reimbursement. Again, we look to the language of the applicable insurance policies to decide the issue.\nWhere multiple policies appear to provide coverage to a common insured for the same risk, the insurers\u2019 respective obligations to pay are determined by examining each policy on its own terms. This Court stated the general principle in Allstate Ins. Co. v. Shelby Mut. Ins. Co., 269 N.C. 341, 152 S.E.2d 436 (1967).\nThe terms of another contract between different parties cannot affect the proper construction of the provisions of an insurance policy. The existence of the second contract, whether an insurance policy or otherwise, may or may not be an event which sets in operation or shuts off the liability of the insurance company under its own policy. Whether it does or does not have such effect, first[,] requires the construction of the policy to determine what event will set in operation or shut off the company\u2019s liability and, second, requires a construction of the other contract, or policy, to determine whether it constitutes such an event.\nId. at 346, 152 S.E.2d at 440; see also Reliance Ins. Co. v. Lexington Ins. Co., 87 N.C. App. 428, 436, 361 S.E.2d 403, 408 (1987) (noting North Carolina rule of construing insurance policies independent of one another).\nWe begin -with the Liberty Mutual CGL policy, which provides, in part, as follows:\nSECTION IV \u2014 COMMERCIAL GENERAL LIABILITY CONDITIONS\n4. Other Insurance.\nIf other valid and collectible insurance is available to the insured for a loss we cover under Coverage A or B of this Coverage Part, our obligations are limited as follows:\na. Primary Insurance\nThis insurance is primary except when b. below applies. If this insurance is primary, our obligations are not affected unless any of the other insurance is also primary. . . .\nb. Excess Insurance\nThis insurance is excess over any of the other insurance, whether primary, excess, contingent or on any other basis:\n(1) That is Fire, Extended Coverage, Builder\u2019s Risk, Installation Risk or similar coverage for \u201cyour work\u201d;\n(2) That is Fire insurance for premises rented to you; or\n(3) If the loss arises out of the maintenance or use of aircraft, \u201cautos\u201d or watercraft to the extent not subject to Exclusion g. of Coverage A (Section I).\nBy its express terms, the Liberty Mutual CGL policy is primary unless there exists other insurance as identified in subsection (1) or (2), set out above, or if the loss is of a specific type identified in subsection (3). The United CGL policy issued to Rosenmund is not \u201cother insurance\u201d of the type specified in the Liberty Mutual policy, nor is the loss of a type that would cause the Liberty Mutual policy to be considered excess. Therefore, the Liberty Mutual CGL policy provides primary insurance for the covered property damage in this case.\nNonetheless, Liberty Mutual contends that United is a co-primary insurer because United issued a CGL policy to Rosenmund intended to provide primary liability coverage, including products liability coverage, and charged Rosenmund a premium consistent with that coverage. Therefore, contends Liberty Mutual, United must share the cost of defending Rosenmund. However, United\u2019s policy also contains an \u201cother insurance\u201d clause, which is identical to the one in the Liberty Mutual policy except for the following additional provisions under section 4.b.:\nb. Excess Insurance\nThis insurance is excess over any of the other insurance, whether primary, excess, contingent or on any other basis:\n(1) That is effective prior to the beginning of the policy period shown in the Declarations of this insurance and applies to \u201cbodily injury\u201d or \u201cproperty damage\u201d on other than a claims-made basis, if:\n(a) No Retroactive Date is shown in the Declarations of this insurance; or\n(b) The other insurance has a policy period which continues after the Retroactive Date shown in the Declarations of this insurance[.]\n(Emphasis added.) Therefore, we examine United\u2019s \u201cother insurance\u201d clause to determine what event(s) bring it into operation. See Allstate Ins. Co., 269 N.C. at 346-47, 152 S.E.2d at 440-41.\nThere is no dispute that the 1 July 1991 to 1 July 1992 policy issued by Liberty Mutual was \u201ceffective prior to\u201d United\u2019s 4 October 1991 to 4 October 1992 policy. Likewise, it is clear that the occurrence-based policy issued by Liberty Mutual applies to property damage \u201con other than a claims-made basis.\u201d However, the parties contest the meaning of section 4.b.(l)(b) in United\u2019s policy. Liberty Mutual asserts that its policy does not have a policy period that \u201ccontinues after\u201d 4 December 1986, the retroactive date in the United policy, because the Liberty Mutual policy did not exist before that date. United, on the other hand, asserts that the Liberty Mutual policy does continue after 4 December 1986, because the words \u201ccontinues after\u201d do not necessarily imply \u201cbegins before.\u201d\nFollowing the usual rules of construction, we use a term\u2019s ordinary meaning if no specific definition is contained within the policy. See Woods, 295 N.C. at 505-06, 246 S.E.2d at 777. The word \u201ccontinue\u201d is not defined in the policy, but continue is generally understood to mean to maintain without interruption. See, e.g., Merriam-Webster\u2019s Collegiate Dictionary 251. The Liberty Mutual policy was in effect from 1 July 1991 to 1 July 1992 and, therefore, was maintained without interruption after 4 December 1986, the retroactive date of United\u2019s policy. It is unnecessary to imply a requirement that the other insurance begin before the retroactive date in order to effectively determine that other insurance \u201ccontinues after\u201d the retroactive date.\nFurther, we consider a policy provision in context so that various terms of a policy are harmoniously construed. See Woods, 295 N.C. at 506, 246 S.E.2d at 777. In section 4.b.(l), the United policy contains a requirement that the other insurance \u201cis effective prior to the beginning of the policy period shown in the Declarations of this insurance,\u201d which is 4 October 1991. Thus, the United policy defines the time frame within which the existence of \u201cother insurance\u201d causes United\u2019s coverage to be excess. The other insurance must be effective prior to 4 October 1991, and it must continue after 4 December 1986. Therefore, the Liberty Mutual CGL policy effective 1 July 1991 to 1 July 1992 is \u201cother insurance\u201d under the United policy.\nBecause the existence of the Liberty Mutual primary policy causes United\u2019s \u201cother insurance\u201d clause to be effective, the United policy is not co-primary as contended by Liberty Mutual. The United policy, by operation of its other insurance provision, is excess to the Liberty Mutual policy. Therefore, even though the United policy contains a standard insuring agreement found in most primary CGL policies, which would require it to defend Rosenmund against any suit for damages, in this case the following provision in the United policy takes precedence:\nb. Excess Insurance\nWhen this insurance is excess, we will have no duty under Coverages A or B to defend any \u201cclaim\u201d or \u201csuit\u201d that any other insurer has a duty to defend.\nInternational also contends that United provided primary coverage to Rosenmund and asserts that because its policy is a \u201cpure\u201d excess policy, it can never be made primary to United\u2019s \u201cprimary\u201d policy. International is correct that its 1 July 1991 to 1 July 1992 occurrence policy is an \u201cexcess\u201d insurance policy. Its insuring agreement provides that International will \u201cindemnify the insured for that amount of loss which exceeds the amount of loss payable by underlying policies described in the Declarations.\u201d Clearly, the International policy was intended to cover losses only in excess of those covered by underlying insurance. However, the United policy is not listed in the International policy\u2019s declarations as an \u201cunderlying policy,\u201d and therefore, International did not issue its excess policy contingent upon the existence of the United policy. We disagree with International\u2019s assertion that its policy is in some way inherently excess to the United policy.\nFurther, for the same reasons articulated earlier, the International 1991-92 policy is \u201cother insurance\u201d by the terms of the United policy. The International policy is an occurrence-based policy, effective before 4 October 1991, and it continues after 4 December 1986. The United policy specifically provides that it is excess over any other insurance \u201cwhether primary, excess, contingent or on any other basis.\u201d (Emphasis added.)\nThe International policy also contains an \u201cother insurance\u201d clause, which provides as follows:\nK. Other Insurance. If other valid and collectible insurance is available to the insured which covers a loss also covered by this policy, other than insurance that is specifically purchased as being in excess of this policy, this policy shall operate in excess of, and not contribute with, such other insurance.\nHowever, in this case, because the United policy is excess, it is not \u201cavailable\u201d within the meaning of the International policy\u2019s \u201cother insurance\u201d clause.\nFor the foregoing reasons, we reverse the Court of Appeals on the issue of whether the United policy was excess to other coverage available to Rosenmund.\nIn sum, the portion of the Court of Appeals\u2019 decision holding that reformation of the Liberty Mutual policies to provide Rosenmund with products liability coverage was appropriate remains undisturbed. We reverse the remainder of the Court of Appeals\u2019 decision and hold (1) that an \u201cinjury-in-fact\u201d trigger of coverage is appropriate in this case, where the date of property damage is known and undisputed; (2) that there was a single occurrence triggering the 1 July 1991 to 1 July 1992 policy year; and (3) that the policy issued to Rosenmund by United is excess to the Liberty Mutual and International policies issued to Gaston and under which Rosenmund was an additional insured.\nREVERSED.\nJustice Martin did not participate in the consideration or decision of this case.\n. Although there was some suggestion by one party that the date of the rupture could not be determined, the complaint alleges and the trial court found the date to be 21 June 1992, and no exception was taken to this finding of fact.", "type": "majority", "author": "FRYE, Chief Justice." } ], "attorneys": [ "Yates, McLamb & Weyher, L.L.P., by Barbara B. Weyher; and Fowler, White, Gillen, Boggs, Villareal & Banker, P.A., by Tracy R. Gunn, pro hac vice, for defendant-appellant Northfield Insurance Company.", "Dean & Gibson, L.L.P, by Rodney Dean and Barbara J. Dean, for defendant-appellee Liberty Mutual Insurance Company.", "Lustig & Brown, L.L.P., by James J. Duggan, pro hac vice; and Henson & Henson, L.L.P., by Perry Henson, Jr., for defendantappellee International Insurance Company.", "Golding, Meekins, Holden, Gosper & Stiles, L.L.P, by Harvey L. Gosper, Jr.; and Sedgwick, Detert, Moran, & Arnold, by Sidney Rosen, pro hac vice, for intervenor-appellant United Capital Insurance Company.", "Parker, Poe, Adams & Bernstein L.L.P., by Josephine H. Flicks, on behalf of Hoechst Celanese Corporation, amicus curiae.", "Rivkin, Radler & Kremer, by Richard S. Feldman, pro hac vice; and Bennett & Guthrie, L.L.P., by Richard Bennett, on behalf of Commercial Union Insurance Company and Fireman\u2019s Fund Insurance Company, amici curiae." ], "corrections": "", "head_matter": "GASTON COUNTY DYEING MACHINE COMPANY, TAX I.D. NO. 56-02-32800, Plaintiff v. NORTHFIELD INSURANCE COMPANY, LIBERTY MUTUAL INSURANCE COMPANY, ROSENMUND, INC., ALLENDALE MUTUAL INSURANCE COMPANY, STERLING WINTHROP, INC., and STERLING PHARMACEUTICALS, INC., AND INTERNATIONAL INSURANCE COMPANY, Defendants, and UNITED CAPITOL INSURANCE COMPANY, Intervenor\nNo. 10PA99\n(Filed 4 February 2000)\n1. Insurance\u2014 comprehensive general liability \u2014 occurrence\u2014 coverage triggered\nWhere there was no dispute that contamination of a medical diagnostic dye commenced on 21 June 1992 when a pressure vessel ruptured and a chemical used in the production process leaked into the dye and that the leakage continued until discovery on 31 August 1992, the rupture of the pressure vessel caused all of the ensuing property damage and there was but one \u201coccurrence\u201d that took place when the leak commenced on 21 June for purposes of comprehensive general liability policies insuring the designer-seller and the fabricator of the pressure vessel. Therefore, only the 1 July 1991 to 1 July 1992 policy period was triggered even though the leakage contaminated multiple dye lots extending into the next policy period.\n2. Insurance\u2014 comprehensive general liability \u2014 knowledge of injury-in-fact \u2014 coverage triggered\nWhere the date of the injury-in-fact is known with certainty, comprehensive general liability policies on the risk on that date are triggered. To the extent that West Am. Ins. Co. v. Tafeo Flooring East, 104 N.C. App. 312, 409 S.E.2d 692 (1991), purports to establish a bright-line rule that property damage occurs \u201cfor insurance purposes\u201d at the time of manifestation or on the date of discovery, that decision is overruled.\n3. Insurance\u2014 comprehensive general liability \u2014 damages from single event \u2014 single occurrence \u2014 coverage triggered\nWhen an accident that causes an injury-in-fact occurs on a date certain and all subsequent damages flow from the single event, there is but a single occurrence, and only liability policies on the risk on the date of the injury-causing event are triggered.\n4. Insurance\u2014 comprehensive general liability \u2014 claims-made policies \u2014 occurrence-based policies \u2014 excess coverage\nA pressure vessel designer-seller\u2019s claims-made comprehensive general liability policy was excess over other insurance available to the designer-seller as an additional insured in occurrence-based comprehensive general liability policies issued to the pressure vessel fabricator that provided primary and umbrella excess coverage where coverage under the occurrence-based policies was triggered by damage resulting from a 21 June 1992 pressure vessel leak; the policy year for the occurrence-based policies was 1 July 1991 to 1 July 1992 and for the claims-made policies was 4 October 1991 to 4 October 1992; the \u201cother insurance\u201d clause of the claims-made policy provided that the coverage was excess to other insurance which was effective prior to the beginning of the policy period and which \u201ccontinued after\u201d the retroactive policy date of 4 December 1986; and the occurrence-based policies were maintained without interruption after 4 December 1986 even though they did not begin before that date.\nJustice Martin did not participate in the consideration or decision of this case.\nOn discretionary review pursuant to N.C.G.S. \u00a7 7A-31 of a decision of the Court of Appeals, 131 N.C. App. 438, 509 S.E.2d 778 (1998), affirming in part, reversing in part, and remanding an order signed 3 February 1997 by Jones (Julia V.), J., in Superior Court, Mecklenburg County. Heard in the Supreme Court 17 September 1999.\nYates, McLamb & Weyher, L.L.P., by Barbara B. Weyher; and Fowler, White, Gillen, Boggs, Villareal & Banker, P.A., by Tracy R. Gunn, pro hac vice, for defendant-appellant Northfield Insurance Company.\nDean & Gibson, L.L.P, by Rodney Dean and Barbara J. Dean, for defendant-appellee Liberty Mutual Insurance Company.\nLustig & Brown, L.L.P., by James J. Duggan, pro hac vice; and Henson & Henson, L.L.P., by Perry Henson, Jr., for defendantappellee International Insurance Company.\nGolding, Meekins, Holden, Gosper & Stiles, L.L.P, by Harvey L. Gosper, Jr.; and Sedgwick, Detert, Moran, & Arnold, by Sidney Rosen, pro hac vice, for intervenor-appellant United Capital Insurance Company.\nParker, Poe, Adams & Bernstein L.L.P., by Josephine H. Flicks, on behalf of Hoechst Celanese Corporation, amicus curiae.\nRivkin, Radler & Kremer, by Richard S. Feldman, pro hac vice; and Bennett & Guthrie, L.L.P., by Richard Bennett, on behalf of Commercial Union Insurance Company and Fireman\u2019s Fund Insurance Company, amici curiae." }, "file_name": "0293-01", "first_page_order": 343, "last_page_order": 359 }