Pacific Coast Casualty Co. v. General Bonding & Casualty Ins.

The General Bonding & Casualty Insurance Company, plaintiff below, here called the “Bonding Company,” recovered judgment against the Pacific Coast Casualty Company, here called the “Pacific Company.” The Pacific Company sued out writ of error. The case as found by the District Court is this:

The Pacific Company of California issued to Elmo Rock Company a policy of employer’s liability insurance by which the Pacific Company insured the Rock Company, a Texas corporation, for the term of a year ending June 18, 1912, on account of an accident to any of its employes “against loss and expense arising from claims upon the assured for damages on account of bodily injuries accidentally suffered or alleged to have been suffered during the period of the policy.” Under the policy the Pacific Company agreed that, if suit should be brought against the Rock Company on account of an accident, the Pacific Company would at its own expense settle or defend the suit whether groundless or not, and that the moneys expended in such defense would not be included in the limits of the liability fixed by the policy. The policy also contained this clause:

The policy further provided that no action would…