UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT ____________

Nos. 21-3032 and 21-3119 ____________

ZURN INDUSTRIES, LLC,

v.

ALLSTATE INSURANCE COMPANY, individually and as successor in interest to Northbrook Excess and Surplus Insurance Company (formerly Northbrook Insurance Company); TRAVELERS CASUALTY & SURETY COMPANY, individually and as successor in interest to the Aetna Casualty and Surety Company formerly known as THE AETNA CASUALTY AND SURETY COMPANY; FIRST STATE INSURANCE COMPANY, a subsidiary of The Hartford Financial Services Group, Inc. doing business as Arrowhead Indemnity Company formerly known as Royal Indemnity; NEW ENGLAND INSURANCE COMPANY, a subsidiary of The Hartford Financial Services Group, Inc.; AMERICAN HOME ASSURANCE COMPANY; GRANITE STATE INSURANCE COMPANY

NEW ENGLAND INSURANCE COMPANY, a subsidiary of The Hartford Financial Services Group, Inc.; FIRST STATE INSURANCE COMPANY, a subsidiary of The Hartford Financial Services Group, Inc., Third Party Plaintiffs

v.

GRANITE STATE INSURANCE COMPANY; LEXINGTON INSURANCE COMPANY; AMERICAN HOME ASSURANCE COMPANY; LIBERTY MUTUAL INSURANCE COMPANY, Third Party Defendants

American Home Assurance Company, Appellant in 21-3032

Zurn Industries, LLC. Appellant in 21-3119 ____________

On Appeal from the United States District Court for the Western District of Pennsylvania (D.C. No. 1-18-cv-00299) District Judge: Honorable Susan Paradise Baxter ____________

Argued on June 15, 2023 Before: PORTER, FREEMAN and FISHER, Circuit Judges.

(Filed: July 28, 2023) Robert L. Byer ARGUED Thomas E. Sanchez Duane Morris

2 625 Liberty Avenue, Suite 1000 Pittsburgh, PA 15222 Gavin Fung Liberty Mutual Insurance Company 175 Berkley Street Boston, MA 02117 Ralph J. Luongo Kennedys CMK 1600 Market Street Suite 1410 Philadelphia, PA 19103 Counsel for Appellant American Home Assurance Co. in No. 21-3032 and Appellee Granite State Insurance Co. in No. 21-3119

Patrick J. Murphy ARGUED Quarles & Brady LLP 411 East Wisconsin Avenue, Suite 2400 Milwaukee, WI 53202 Counsel for Appellant Zurn Industries, LLC in No. 21- 3032 Robert R. Anderson, III ARGUED Christopher A. Johnson Margaret Truesdale ARGUED Hughes Socol Piers Resnick & Dyn 70 W Madison Street, Suite 400 Chicago, IL 60602

3 Timothy R. Smith Pion, Nerone, Girman, Winslow & Smith 1500 One Gateway Center Pittsburgh, PA 15222 Counsel for Appellee Allstate Insurance Co. Myles D. Morrison ARGUED James P. Ruggeri Ruggeri Parks & Weinberg 1875 K Street NW, Suite 600 Washington, DC 20006 Michael A. Shiner Tucker Arensberg One PPG Place Suite 1500 Pittsburgh, PA 15222 Counsel for Appellee First State Insurance Co. and New England Insurance Co. ____________

OPINION OF THE COURT ____________ FISHER, Circuit Judge. Zurn Industries, LLC is a manufacturer of plumbing products and accessories. For over a decade, it has faced a litany of lawsuits in which claimants allege bodily injury or wrongful death caused by asbestos in its products. To cover litigation costs, Zurn used various insurance policies issued by various insurance companies. Eventually, Zurn was told by its primary and umbrella insurers that Zurn had exhausted the

4 limits of liability under those policies. So Zurn turned to its excess insurance policies for cove