The Continental Insurance Company by and Through Marine Office of America Corporation, Its Marine Underwriting Manager v. Highlands Insurance Company

In this diversity case The Continental Insurance Company (Continental), a New Hampshire corporation, appeals from the district court’s grant of summary judgment in favor of Highlands Insurance Company (Highlands), a Texas corporation. We affirm and impose sanctions on appellant for bringing a frivolous appeal.

1. Events. In 1979 Henry Goulden, an employee of General Construction Company (General) was injured while working as a pile driver on board General’s derrick barge in Oakland harbor. In 1981 he brought four causes of action against General — for unseaworthiness; for Jones Act negligence; for maintenance and cure; and for negligence as a vessel owner under the Longshore and Harbor Workers’ Compensation Act (LHWCA). The case was defended by General’s insurer, Continental. Four days before trial, on March 1, 1984, Continental advised Highlands, also an insurer of General, that the trial was imminent and that Continental would demand contribution from Highlands if Goulden recovered. On March 6, 1984, Continental settled with Goulden for a total amount of $418,000. Continental’s attorneys’ fees and costs were $52,000. Continental now seeks contribution from Highlands to both the…