Liberty Mutual Insurance v. Colonial Insurance

In this declaratory relief action defendant, Colonial Insurance Company (hereafter “Colonial”), appeals from a judgment against it and in favor of plaintiff, Liberty Mutual Insurance Company (hereafter “Liberty”), based upon the holding that Colonial was the primary insurer and Liberty was only the excess insurer of the personal injury claim of one Johnson.

On December 17, 1962 Johnson drove a truckload of steel onto the premises of the Butler Manufacturing Company (hereafter “Butler Co.”). During the unloading process he sustained personal injuries when a portion of the load fell on him.

Johnson was the employee of an independent hauling contractor engaged by the consignor, Columbia-Geneva Steel Company, to haul the steel to the premises of Butler Co. There was no contractual or business relationship between the hauling contractor and Butler Co.

A crane being used to assist in unloading the truck was owned and operated by Butler Co. and was permanently affixed to Butler’s premises by an overhead rail track. This equipment was not and could not be used on a public highway nor could it in any sense be considered as a motor vehicle under the Vehicle Code.

Liberty had…