Canadian Indemnity Co. v. United States Fidelity & Guaranty Co.

Appellee United States Fidelity & Guaranty Co. (herein “U.S.F. & G.”) has paid a judgment on behalf of one of its insureds, and here seeks to recover the amount so paid from Canadian Indemnity Company (herein “Canadian”). U.S.F. & G. issued a policy insuring only Headrick & Brown Co. against any liability such as that involved in this case, wherein an employee of that insured committed a tort for which Headrick & Brown Co. was liable on the basis of re-spondeat superior.

Canadian issued a policy insuring another company (Thomas Rigging Co., employed to deliver a steel girder to a construction project) and any person driving a truck owned by such company with the permission of the insured. The omnibus clause in that policy is broad enough to include Headrick & Brown Co.

An accident occurred giving rise to the liability here involved. The truck involved in this accident belonged to Canadian’s insured, (Rigging Company) and was driven with its permission, by one Goff, an employee of Headrick & Brown Co. (U.S.F. & G’s. insured, and included within Canadian’s omnibus clause.)

The accident was caused through the negligence of Goff, who was covered by Canadian’s policy within the…