Pacific Power & Light Company, a Corporation v. Transport Indemnity Company, a Corporation
Opinion
Opinion
Trask, J.
Pacific Power & Light Company (Pacific) brought this action against Transport Indemnity Company (Transport) seeking damages for breach of an insurance contract. Jurisdiction in the court below was based upon diversity of citizenship, 28 U.S.C. § 1332 , and the case is here upon appeal from a judgment of the district court in favor of the plaintiff.
Pacific is a public utility with its principal place of business in Oregon. It had purchased and had in force a general liability policy with The Home Insurance Company (Home) which contained a $25,000 deductible provision. In March 1964, it entered into a contract with Evergreen Helicopter, Inc. (Evergreen) wherein the latter agreed to patrol Pacific’s transmission lines by helicopter and provide other services using Evergreen’s equipment and personnel. Evergreen also agreed to obtain an insurance policy with $1,000,000 coverage for public liability and $1,000,000 property damage. The defense and payment coverages of this policy which it obtained from Transport related specifically to damages and suits arising from
On March 26, 1965, Transport, by written endorsement, added Pacific as a named insured,