Columbia Grain, Inc. v. Oregon Insurance Guaranty Ass'n

Opinion by Judge TROTT.

Appeal from the United States District Court for the District of Oregon.

Oregon Insurance Guaranty Association and Louisiana Insurance Guaranty Association appeal the district court’s summary judgment in favor of Buhler-Miag, Inc. The district court ruled that Buhler-Miag’s third-party claims against Sharp Electric, Inc. were “covered claims” under both Oregon and Louisiana law, entitling Buhler-Miag to recover a portion of these claims from the Oregon and Louisiana Insurance Guaranty Associations. We have jurisdiction under 28 U.S.C. § 1291 , and we conclude that Buhler-Miag’s claims are excluded from the definition of a “covered claim” because any money paid on these claims will go to Buhler-Miag’s insurer.

*930 I

BACKGROUND

Columbia Grain, Inc. owned and operated a grain loading facility in Oregon. In 1976 and 1983, portions of the facility were damaged. Columbia Grain brought a product liability action against Buhler-Miag, the designer of part of the facility. Columbia Grain prevailed in its action, and Republic Insurance Company, Buhler-Miag’s insurer, paid the resulting judgment of $796,214. Buhler-Miag and Republic Insurance executed a loan…