Palp, Inc. v. Williamsburg National Insurance

Palp, Inc., doing business as Excel Paving (Excel Paving), and its commercial general liability (CGL) insurer Virginia Surety Company, Inc. (Virginia Surety), appeal from a judgment after the trial court granted Williamsburg National Insurance Company’s (Williamsburg) summary judgment motion in this insurance coverage case. Williamsburg provided commercial lines automobile/trucker’s insurance on a dump truck *286 owned by its insured, REH Trucking, Inc. (REH), which was providing hauling services on Excel Paving’s parking lot demolition jobsite. Excel Paving was a named additional insured on the Williamsburg policy. An Excel Paving employee struck the cab of the REH dump truck with the bucket of an excavator being used to load broken asphalt into a different vehicle, not the dump truck, injuring the dump truck driver and damaging the truck.

The dump truck driver sued Excel Paving and its employee for negligence. The physical-damage insurer of the dump truck sued Excel Paving and its employee in subrogation. Virginia Surety agreed to defend and indemnify Excel Paving (and its employee) in both lawsuits under the CGL policy, but it and Excel Paving also tendered defense to…