Great American Insurance v. Globe Indemnity Co.

Plaintiffs brought this action in the court below, seeking a declaration that the automobile liability insurance policy issued by defendant Globe Indemnity Company provides the primary coverage for plaintiff William Frye and his employer, Communication Enterprises, Inc., for any damages resulting from the automobile collision between Frye and defendant Linda Lee Bundy. For convenience, we shall hereafter refer to plaintiff Great American Insurance Company as Great American, to plaintiff Communication Enterprises, Inc. as Enterprises, to defendant Globe Indemnity Company as Globe, and to defendant Field & Gooch partnership as Field & Gooch.

The facts are substantially as follows:

Following the accident an action for damages was brought on behalf of Miles Bundy in the Superior Court of Kern County against Enterprises, William Frye and Field & Gooch. A similar action against the same defendants was brought by Mrs. Bundy in the Municipal Court of the Bakersfield Judicial District. Then, Great American demanded that Globe assume the defense of William Frye and Enterprises, asserting that they were covered by the Globe policy. Great American had issued a comprehensive public…