Healy Tibbitts Construction Co. v. Foremost Insurance Co.
United States District Court for the Northern District of California
482 F. Supp. 830 (1979)
- Written by Daniel Clark, JD
Facts
Healy Tibbitts Construction Company (Healy) (plaintiff) purchased insurance on several of its vessels from Foremost Insurance Company (Foremost) (defendant). The companies negotiated and signed the insurance contract in California, where Healy had its principal place of business. The contract contained language requiring Healy to give adequate notice to Foremost of any incidents that could lead Foremost to have to pay out a legal claim. The contract also had provisions detailing the two parties’ obligations to each other in the event that a third party sued Healy or Foremost for an incident involving one of the insured vessels. One of the insured vessels sank in an accident at the United States Naval Supply Center. The United States filed several claims against Healy for cleanup costs related to the accident. Healy then filed defense and indemnity claims against Foremost in district court. Foremost argued that the notice provisions should estop Healy from seeking defense and indemnity. The district court was charged with determining which body of law governed interpretation of the contract.
Rule of Law
Issue
Holding and Reasoning (Weigel, J.)
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