Camay Drilling Co. v. Travelers Indemnity Co.

Camay Drilling Company appeals from a judgment in favor of Travelers Indemnity Company in a declaratory relief action brought by Camay.

Ulysses Kelley, an employee of B & Y Stanton House Movers, was injured while engaged in the process of moving an oil derrick belonging to Camay a short distance from one drilling location to another. Kelley filed an action against Camay alleging that prior to the commencement of the moving operation Camay “so negligently attached a certain pipe to said oil derrick in such fashion that said pipe was caused to fall after the said oil derrick was moved to the new location.” That action is now pending.

Appellant brought the present action against Travelers, insurer of B & Y under a comprehensive liability insurance policy, to force Travelers to defend it in Kelley’s action and to determine the rights and obligations of the parties under the policy. The theory of the present action is that Camay was “using” B <& Y’s tracks during the move and is thus an additional insured under the policy issued by Travelers to B & Y.

The trial court, sitting without a jury, determined that Camay was not using the insured vehicles nor legally responsible…