Ohio Casualty Insurance v. Harbor Insurance

This appeal, brought by defendant Harbor Insurance Company (Harbor), is from a declaratory judgment in favor of plaintiff Ohio Casualty Insurance Company (Ohio), determining the respective obligations of each party to indemnify and defend a third party claim for property damage lodged against their respective insureds. Judgment in favor of plaintiff Ohio was entered May 6, 1966, declaring defendant Harbor’s obligation to return the settlement contribution made by plaintiff Ohio and to pay any costs and attorney’s fees incurred by Ohio in connection with the third party claim as well as costs and attorney’s fees in the present action. Motions for new trial and to vacate the judgment were timely made by defendant Harbor, and they were denied June 8, 1966. Notice of appeal was filed June 22, 1966.

The Irvine Company (Irvine) owned, and desired to lease for residential development, a large tract of land situated along the eastern side of upper Newport Bay. Irvine created two subsidiary corporations, Eastbluff-Newport, Inc. (East-bluff) and Jamboree Land Company (Jamboree) leasing a portion of the tract to each. In the spring of 1963 all the stock of Eastbluff was purchased by John D,…