Larson Construction Company, an Oregon Corporation, and R. C. Larson v. Oregon Automobile Insurance Co., an Oregon Corporation

Koppers Company, the owner of a cargo of logs, employed Larson Construction Company (hereafter Larson) to load the logs aboard a barge owned and operated by Shaver Transportation Company (hereafter Shaver). In the course of the loading, one of Larson’s employees, Gray, was injured. Gray sued Shaver, and Shaver, who claimed that Larson was responsible on an indemnity theory, tendered the defense to Larson. Ultimately Shaver settled the Gray claim for $43,-366.76, and Larson paid $38,366.76 to Shaver in settlement of Shaver’s indemnity claim against Larson. It was stipulated that the settlements were reasonable. Larson referred the Shaver claim against it to the Oregon Automobile Insurance Co. (hereafter Oregon Insurance) which had issued a comprehensive general liability policy to Larson. Oregon Insurance denied coverage and this action was brought by Larson to recover the amount paid Shaver plus attorney’s fees. The District Court entered a judgment dismissing the complaint, 301 F. Supp. 1112 , and this appeal followed. The questions presented are questions of law involving the construction and application of the Oregon Insurance policy.

The policy in question obligates Oregon…