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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE ) ) ) ) ) ) ) ) ) ) ) ) )
FLOWSERVE CORPORAnON, Plaintiff,
C.A. No.: 04-1294 JJF
v.
BURNS INTERNAnONAL SERVICES CORPORAnON and BORG-WARNER CORPORATION, Defendants.
DEFENDANT/COUNTERCLAIMANT BURNS INTERNATIONAL SERVICES CORPORATION'S ANSWERING BRIEF IN OPPOSITION TO MOTION TO DISMISS OF PLAINTIFF/COUNTER-DEFENDANT FLOWSERVE CORPORATION
MURPHY SPADARO & LANDON Francis J. Murphy, LD. # 223 1011 Centre Road, Suite 210 Wilmington, DE 19805 Office (302)472-8100 Fax (302)472-8135 Email [email protected]
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TABLE OF CONTENTS Pae:e
STATEMENT OF THE NATURE AND STAGE OF THE PROCEEDING STATEMENTOF FACTS Flowserve Corporation Burns International Services Corporation The Underlying Asbestos Claims The Indemnity Provisions at Issue Flowserve's Wrongful Use OfInsurance That Is The Property Of Burns The Allegations of Counts IV and V of Burns' Counterclaim ARGUMENT The Standard for 12 (b)(6) Motions Flowserve's Motion To Dismiss Should Be Denied Flowserve's Motion Is Not Supported By The Case Law CONCLUSION
1 2 2 3 3 4 6 7 9 9 9 13 19
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TABLE OF AUTHORITIES Cases Pal!e
Chrysler Corp. v. Airtemp Corp., 426 A.2d 845 (Del. Super. 1980) Fleer Corp. v. Topps Chewing Gum, Inc., 539 A.2d 1060 (Del. Supr.1988) Highlands Ins. Group, Inc. v. Halliburton Co., 852 A.2d 1 (Del.Ch. 2003) Home Insurance Co. v. Honaker, 480 A.2d 652 (Del. Supr. 1984) Kost v. Kozakiewicz, 1 F.3d 176 (3rdCir. 1993) Lynch v. U.S., 292 U.S. 571 (1934) Resource Ventures, Inc. v. Resource Management International. Inc., 42 F. Supp.2d 423 (D.Del. 1999)
10, 14 10, 11, 12, 14 16 18 9 12
9
Schock V. Nash, 732 A.2d 217 (Del. Supr. 1999) 10, 11, 12, 14 Tenneco Automotive Inc. v. El Paso Corp., C.A. No. 11810-NC,Noble V.C. (Mem. Op., Nov. 29, 2001), 2001 WL 11 Union Texas Petroleum Holdings, Inc. v. Travelers Indemnity Co., C.A. No.15448, Chandler, Ch. (Mem. Op., Feb. 19, 1998), 1998 WL 83068 Willingham v. Kral Music, Inc., 505 A.2d 34 (Del. Super. 1985) Other Authorities
11 11
Restatement of Restitution §1 Restatement of Restitution §40
10, 11 15
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