St. Paul Fire and Marine Insurance Company, a Corporation v. Sears, Roebuck and Company, a Corporation

St. Paul Fire and Marine Insurance Company (“St. Paul”) brought this diversity action against Sears, Roebuck and Co. (“Sears”) and others for declaratory relief as to its obligation to Sears, CCC Plastics, Inc. (“CCC Plastics”) and other parties under a policy of liability insurance issued to the latter two named corporations. Summary judgment was granted in St. Paul’s favor and Sears now appeals to this Court. I. FACTS

St. Paul entered into a “Comprehensive General and Automobile Liability Coverage” insurance agreement (“Insuring Agreement”) with CCC Plastics which became effective September 1, 1972. On November 20, 1973, St. Paul issued a “Certificate of Insurance” which stated that Sears was to be named as an “Additional Insured”.

On November 28,1972, Sears entered into a “Contract for Installation Services” (“Services Contract”) with CCC Plastics whereby the latter agreed to install urethane foam roofing for Sears’ customers, when needed, as Sears did not engage in the installation of certain materials which it sold. On May 19, 1974, Sears sold and agreed to have installed urethane foam roofing on buildings managed by the Park South Community Association (“Association”), a…