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Puritan Insurance Co. v. Aldan Rubber Co.

filed: February 1, 1989.

PURITAN INSURANCE COMPANY, PLAINTIFF-APPELLEE, AND TWIN CITY FIRE INSURANCE COMPANY, INTERVENING PLAINTIFF-APPELLEE
v.
ALDAN RUBBER COMPANY, DEFENDANT-APPELLANT



On Appeal from the United States District Court for the Eastern District of Pennsylvania, D.C. No. 86-2937, Hon. Charles R. Weiner, District Judge.

Gibbons, Chief Judge, Hutchinson and Hunter, Circuit Judges.

Author: Gibbons

Order

It is hereby ORDERED that the slip opinion in the above matter dated January 30, 1989 is hereby vacated and the attached opinion dated February 1, 1989 is filed in its place.

Opinion OF THE COURT

GIBBONS, Chief Judge

Aldan Rubber Company, a manufacturer of polyurethane coatings, and an insured under general liability insurance policies issued by Puritan Insurance Company and Twin City Fire Insurance Company, appeals from a summary judgment in favor of the insurance companies in their action seeking a declaratory judgment that they need not defend or indemnify in connection with a suit against Aldan pending in the United States District Court for the District of Delaware.

Puritan Insurance Company has moved to dismiss Aldan's appeal against it as untimely because the summary judgment against it was entered on February 8, 1988, and the notice of appeal was filed on July 21, 1988. The motion will be denied. den Twin City Fire Insurance Company was permitted to intervene the case fell within the terms of Fed. R. Civ. P. 54(b). No final judgment was entered, therefore, until the court granted Twin City's summary judgment motion on June 22, 1988. Thus the appeal was timely.

The underlying claim is by East-Wind Industries, Inc. v. Aldan Rubber Company, Civil Action No. 86-27 (D. Del.). It alleges that it purchased coated fabric from Tan-Tex Industries, Inc. to use in manufacturing parkas for the military, that Aldan manufactured the polyurethane coating on the fabric, which it certifies would produce fabric which complied with MIL-C43906A.

The policy exclusion on which the district court relied in granting summary judgment to the general liability insurers reads:

This insurance does not apply:

(m) to loss of use of tangible property which has not been physically injured or destroyed resulting from:

(1) a delay in or lack of performance by or on behalf of the named insured of any contract or agreement, or

(2) the failure of the named insured's product or work performed by or on behalf of the named insured to meet the level of performance, quality, fitness or durability warranted or represented by the named insured; but this exclusion does not apply to loss of use of other tangible property resulting from the sudden and accidental physical injury to or destruction of the named insured's product or work performed by or on behalf of the ...


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