American Fidelity Co. v. Deer-Field Valley Grain Co.
District Court, D. Vermont · 1942-03-23 · cited 17×
This case is a petition by American Fidelity Company for a declaratory judgment on whether its motor vehicle liability policy issued to Deerfield Valley Grain Company covered injuries to employee J.P. Reando from a November 12, 1938 accident during a company business trip to Marlboro, Vermont, and whether the insurer had a duty to defend related suits. The facts showed Reando, along with other employees Hall and Whitney, was using the covered truck for deliveries and wood transport when Reando was injured after being instructed to place chains on the wheels while under the truck. The court determined there was no coverage and no duty to defend because the policy explicitly excluded bodily injury to employees engaged in the business of the insured (other than domestic employment) and contained related exclusions for obligations under workers' compensation laws, applying standard contract interpretation principles under Vermont law to harmonize the defense and coverage provisions.
