R.W. Beck & Assoc. v. City & Borough of Sitka

Opinion by Judge REAVLEY.

These consolidated appeals arise from an insurance dispute among the City and Borough of Sitka, Alaska (Sitka) and three insurance companies: Western World Insurance Company (Western), Providence Washington Insurance Company (Providence), and Admiral Insurance Company (Admiral). The district court disposed of the various coverage disputes by summary judgment. We reverse the judgment to the extent that it absolves Western of excess liability coverage.

FACTUAL AND PROCEDURAL BACKGROUND

Sitka owned and operated Blue Lake Dam. It hired R-.W. Beck & Associates (Beck) and Alaska Aquatic Dive Center, Inc. (Aquatic) to perform certain services on the dam. On April 20, 1983 McKinley Nicholas, the president of Aquatic, died while making an underwater inspection of the dam. At the time, Sitka had a primary insurance policy with Providence and an excess liability policy with Western. Sitka was also named as an additional insured on an Admiral primary policy issued to Aquatic. Nicholas’ widow and estate (collectively “the estate”) brought a *1478 wrongful death suit in Alaska state court against Beck and Sitka, and obtained a substantial judgment against…