General Accident Fire & Life Assur. Corp. Ltd. v. Viking Automatic Sprinkler Co

This is an appeal from an order of the district court dismissing the complaint of the appellant, Assurance Co., suing to recover on an alleged contract of the appellee, Viking Co., to indemnify the Austin Co. against the latter’s sole negligence. The court held the Viking Co. had made no such contract.

The Assurance Co. 'had issued a comprehensive liability policy to the Austin Co., inter alia, insuring it against its own negligence. The Austin Co. was a prime contractor on the construction of buildings at Mills Field Airport and employed as subcontractor the appellee, the Viking Co., for installation of a sprinkler system in- these buildings.

Two employees of the Viking Co. were injured through the sole negligence of the Austin Co. The Assurance Co. eventually paid the Austin Co. $19,458.24 under its policy in satisfaction of the claims of these workmen against Austin Co. and sues as its subrogee.

The relevant clause of the contract of Austin Co. with the Viking Co. provides:

“7. Insurance. — It is understood and agreed that vendor [Viking Co.] is fully covered with Public Liability, Workmen’s Compensation and Property Damage Insurance and agrees to protect and indemnify the…