Underground Construction Co. v. Pacific Indemnity Co.

The question presented on this appeal is whether in a declaratory relief action the trial court properly determined that a policy of insurance issued by Pacific Indemnity Company (hereinafter “Pacific”) provided for primary insurance coverage. We have concluded that this determination was correct and that the judgment must be affirmed.

The underlying factual situation presented in the instant case is as follows: on October 6, 1969, Milton Butler and Carl Swafford, employees of Underground Construction Co. (hereinafter “Underground”), were engaged in the placing of casings underneath a highway for the installation by Underground of water lines for a water company. On that day Elmer Smith, an employee of Howard Supply Company (hereinafter “Howard”) drove a truck and trailer loaded with casings to the jobsite. The truck and trailer were owned by Howard and the casings had been ordered by Underground from Howard. In the process of unloading the casings from the trailer-Swafford used a piece of equipment known as a “Hoptoe 300” which was owned by McAllister Leasing Company (hereinafter “McAllister”) and which McAllister had leased to Underground. In the unloading process a…