The Peerless Insurance Company, a Corporation v. Travelers Insurance Company, a Corporation

The Peerless Insurance Company, a corporation, appellant herein, filed an action in the Superior Court of the State of Arizona against Travelers Insurance Company, a corporation, appellee herein, for a declaratory judgment adjudging and declaring the appellee was obligated under its insurance policy theretofore issued to the Shell Oil Company to pay any judgment which might be affirmed or rendered against Shell in an action theretofore brought against Shell by one Jean Collar. By reason of diversity the action was properly transferred to the United States District Court for the District of Arizona. The action was there tried by the court without a jury upon stipulated facts and exhibits. The district court made findings of fact and conclusions of law, and rendered judgment in favor of the appellee. A timely appeal was taken to this court which has jurisdiction under 28 U.S.C. § 1291 . We affirm.

We shall set out certain pertinent facts which have been agreed to by the parties. Jean Collar was injured and damaged as a result of the ignition of liquid petroleum gas manufactured by Shell Oil Company. The gas was sold and distributed by Shell to Butane Corporation (Butane), and sold…