Dillingham Corporation, a Hawaiian Corporation v. Employers Mutual Liability Insurance Company of Wisconsin, a Corporation

Plaintiff-appellee Dillingham Corporation (Dillingham), brought this diversity action for indemnity against defendant-appellant, Employers Mutual Liability Insurance Company of Wisconsin (Employers), for damages and attorney fees incurred in the defense and settlement of an action brought by William Simpson, an employee of Albina Engine & Machine Works (Albina), a division of appellee, against Matson Navigation Company (Matson), in which Dillingham was im-pleaded. The case was submitted to the district court on stipulated facts and exhibits. The court found in favor of ap-pellee, and judgment was entered against appellant for the amount of the settlement, with interest, costs and attorney fees.

Insurance Policies Issued to Dillingham

Employers issued an insurance policy to Dillingham for the period July 1, 1968 to July 1, 1969. Coverage A provided Workmen’s Compensation coverage. Coverage B provided Employer’s Liability coverage in the maximum amount of $50,000 as follows:.

Exclusion (c) provides that this policy does not apply:

Continental Insurance Company (Continental) insured Dillingham under a general liability policy for one year beginning January 1, 1969 in the…