The State of California has filed its opening appeals brief in a big environmental coverage dispute, in which it is arguing that it is entitled to coverage for its contamination liability up to the combined limits, which must be based on three occurrence limits, of all applicable excess policies, and that its excess carriers are not entitled to a setoff from insurers that have settled.   There is much more to the story in the Aug. 21 issue of LexisNexis Mealey’s Litigation Report:  Insurance Pleadings