Cravens, Dargan & Co. v. Pacific Indemnity Co.

This case has to do with the question of liability of Pacific Indemnity Company under a comprehensive liability policy which it issued to Moyer Chemical Company. The plaintiff insurance companies, Cravens, Dargan & Company and London & Edinbergh Finance Co., appellants, also carried comprehensive liability insurance for Moyer and paid a large proportion of the settlement of the third party lawsuit. Moyer Chemical paid its deductible outright, but also paid an amount ($26,750) equal to that paid by Cravens, Dargan & Company. But the Moyer Chemical payment was supplied by a loan from Cravens, Dargan, and was to be repaid only from any recovery made in the contemplated lawsuit against Pacific Indemnity, and the control of the lawsuit was agreed to belong to Cravens, Dargan. Moyer Chemical and Cravens, Dargan filed separate actions against Pacific Indemnity, for declaratory relief and indemnity. The actions were consolidated for trial. Judgment was in favor of Pacific Indemnity. Plaintiffs appeal.

The claim was for damages to a seedling crop of tomatoes. It is undisputed that the damage to the crop was caused by the use of Lindane 2-G, an insecticide which had been sold by…