Chevron U.S.A., Inc. v. Bragg Crane & Rigging Co.

Bragg Crane & Rigging Company appeals the granting of declaratory relief in favor of Chevron U.S.A., Inc. (Chevron). We affirm.

On August 1, 1977, Bragg and Chevron entered into a form contract under which Bragg was to provide crane services for Chevron. The contract, prepared by Chevron, included liability and insurance provisions. Bragg was required to indemnify and hold Chevron harmless for damages, unless the damages resulted from the sole and exclusive active negligence or willful misconduct of Chevron.

The insurance provisions required, in part, that Bragg obtain “Comprehensive General Bodily Injury Liability Insurance” for itself and Chevron of not less than $500,000 per occurrence. Bragg obtained insurance from American Universal Insurance Company for the amount required. However, the policy included a $100,000 deductible.

On March 3, 1978, toxic hydrogen sulfide fumes escaped from a fuel gas pump at the refinery injuring two Bragg employees, Buddy Jack Vandagriff and Frank Dale Stainbrook. The injuries were caused by the admitted sole negligence of Chevron.

Vandagriff and Stainbrook sued Chevron for personal injuries. Bragg’s workers’ compensation carrier…