Safeway Stores, Inc. v. Royal Indemnity Co.

This is an appeal from a judgment entered pursuant to subdivision 3 of section 581 of the Code of Civil Procedure, dismissing an action after the entry of an order sustaining a demurrer without leave to amend. For the reasons set forth below, we reverse the judgment.

Antonio Benavidez was an employee of Hall-Haas & Vessey, Ltd. He was engaged in unloading a truck owned or hired by his employer, on the premises of plaintiff Safeway Stores. He was assisted in that operation by plaintiff James Bunch, an employee of Safeway. An accident occurred, resulting in injury to Benavidez. For that injury, he is entitled to recover workmen’s compensation benefits from Hall-Haas & Vessey. Benavidez has filed a tort action against Safeway and Bunch, alleging that his injury was caused by the negligence of Bunch, acting in the course and scope of his employment by Safeway.

The complaint herein is for declaratory relief, seeking an adjudication that defendant is obligated to defend the Benavidez suit against Safeway and Bunch and to pay any judgment recovered therein. The complaint alleges that defendant insurance company had issued an automobile policy, still in force, insuring…