Capital Insurance & Surety Co., Inc., a Corporation v. Globe Indemnity Company, a Corporation

This case is here for the second time. All the relevant facts are set out in our first opinion, Globe Indemnity Co., v. Capital Insurance & Surety Co., 352 F.2d 236 (9th Cir. 1965). There we vacated a $9,045 judgment in favor of Globe and remanded the cause to the district court for the primary purpose of augmenting the record by adding evidence which Globe contended would establish Card-an's non-coverage under the Globe policy and thus require a larger judgment in its favor. After remand, this evidence was admitted by stipulation. The district court found that Carolan was indeed not covered by the Globe policy and therefore entered judgment for Globe for $89,500 upon the theory of equitable subrogation. See United Pacific Insurance Co. v. Ohio Casualty Insurance Co., 172 F.2d 836 (9th Cir. 1949).

Capital maintains that the district court erred in holding that Carolan was not covered by the Globe policy. Globe’s policy provided coverage to Philco as a named insured and to certain Executive Officers of Philco as additional insureds. Other employees of Philco were not covered under the policy unless Philco directed Globe in writing to cover the employee against whom a claim had…