Pacific Inland Navigation Co., Inc. v. Fireman's Fund Insurance Company

Appellant, Pacific Inland Navigation Co., Inc. (Pacific), brought this civil action to compel Appellee, Fireman’s Fund Insurance Company (Fireman’s Fund), to honor an alleged contractual obligation to indemnify Pacific against loss by reason of liability imposed upon it by law for damages. The contract in question is Fireman’s Fund Insurance Company Policy No. LS-1214 effective June 1, 1964. The particular accident was suffered by a longshoreman, Friedolf Hum-pla, while directly employed by Pacific aboard one of its barges in the Port of Portland, Oregon, on September 27, 1964.

Humpla subsequently brought suit against Appellant in reliance upon the case of Reed v. S/S YAKA, 373 U.S. 410 , 83 S.Ct. 1349 , 10 L.Ed.2d 448 (1963). The defense of that suit was tendered to Fireman’s Fund and was rejected. Thereafter, Pacific settled the Humpla suit for $35,343.85. . Of this amount, $30,000 was paid by Pacific and the remainder was contributed by Fireman’s Fund through waiver of its statutory lien under the Longshoremen’s and Harbor Workers’ Compensation Act for medical expenses and compensation paid.

The basis of this suit is the policy of insurance identified above. The coverage upon…