Globe & Republic Ins. Co. of America v. Independent Trucking Co.

Decision Date03 December 1963
Docket NumberNo. 40297,40297
Citation1963 OK 274,387 P.2d 644
PartiesGLOBE & REPUBLIC INSURANCE COMPANY OF AMERICA, Plaintiff in Error, v. INDEPENDENT TRUCKING COMPANY, Inc., an Oklahoma Corporation, Defendant in Error.
CourtOklahoma Supreme Court

Syllabus by the Court

1. Under an endorsement to an insurance policy covering the insured trucking company's 'legal liability' for accidental damage to the insured property while being loaded, and such property was damaged while being loaded, 'legal liability' on the part of the insured was established by judgment in a prior action holding insured liable in action by owner of such damaged property, in which action the insurer assumed the defense; for the term 'legal liability' in such insurance contract is a liability which courts of justice recognize and enforce as between parties litigant therein.

2. The right to recover attorney's fees from one's opponent in litigation as a part of the costs thereof does not exist at common law. Such allowances in the absence of statute or some agreement expressly authorizing the same, cannot be sustained.

Appeal from Superior Court of Creek County, Drumright Division; G. B. Chuck Coryell, Judge.

Appeal by Globe & Republic Insurance Company of America (defendant below) from a money judgment rendered in favor of Independent Trucking Company, Inc. (plaintiff below) upon a liability insurance policy issued by the above named defendant insurance company. Affirmed in part and reversed in part.

Knight & Wilburn, by Ray H. Wilburn, Tulsa, for plaintiff in error.

Doyle Watson, Drumright, for defendant in error.

DAVISON, Justice.

This is an appeal by Globe & Republic Insurance Company of America (defendant below) from a money judgment rendered in favor of Independent Trucking Company, Inc. (plaintiff below) upon a liability insurance policy issued by the above named defendant insurance company. The parties will be referred to as Globe and Independent.

The record reflects that Independent was engaged in the business of hauling oil field equipment by means of motor trucks and trailers and that Globe furnished an insurance policy to Independent covering loss or damage to such property during the loading, transportation and unloading of said equipment. The background of the instant suit and appeal is that one Ray Lawrence engaged Independent to haul a unit of equipment consisting of two motors and a pump, and weighing about 15 tons, to a well location. While Independent was engaged in loading the equipment the line or cable broke twice causing the equipment to fall about 2 or 3 feet on each occasion. The only noticeable result of the falls was that the radiator hose was jarred loose and this was replaced. Thereafter Lawrence used the pump unit for a number of days at several well locations until the pump failed to operate because of broken pump gears and housing. In making repairs it was found that two bolts holding a front motor support were sheared off.

Lawrence sued Independent, claiming damage in that the falls sheared the bolts and damaged the pump because the weight was placed on a rear support, whereby that part of the unit was out of alignment and in effect operated under strain. Globe undertook the defense of that action under a non-waiver and reservation of rights agreement. The suit was tried to the court and resulted in a general lump sum judgment, with no findings, in favor of Lawrence and against Independent for all of the damage sustained and resulting to the equipment in the sum of $1832.40. We assume that the court concluded that the initial damage to the bolts and the condition thereby created was the proximate cause of any and all subsequent damage to the pumping unit. Globe refused to pay this judgment on the ground that the damage was not covered by its insurance policy and Independent paid the judgment.

Thereafter Independent brought the present action against Globe on the insurance policy to recover the amount paid in satisfaction of the judgment and in addition thereto an attorney fee for services of its attorney in the present action. The action was tried to the court upon a stipulation as to the existence of the policy and the satisfaction of the prior judgment and by introduction in evidence of a transcript of the proceeding and testimony in the prior action. The trial court rendered a general judgment, with no findings, in favor of Independent and for $450 attorney's fee.

Globe urges that under the terms of the policy its liability was limited to the damage to the equipment occurring while in the custody of Independent and that the evidence shows this consisted of only the two sheared bolts, which would cost only $10 to replace, and that the balance of the damage included in the money judgment took place after the equipment was delivered to Lawrence and while it was being operated. If such contention is supported by the evidence and the applicable law, then the liability of Globe falls within the $100 deductible provision of the policy and Globe owes nothing to Independent.

In Section 1 of the policy Independent is insured on its liability as a carrier for physician loss or damage to oil field equipment 'while...

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27 cases
  • Barnes v. Oklahoma Farm Bureau Mut. Ins.
    • United States
    • Oklahoma Supreme Court
    • July 18, 2000
    ...Ordinarily, attorney fees may not be recovered in the absence of an agreement or statutory authority. Globe & Republic Ins. Co. v. Independent Trucking Co., Okl., 387 P.2d 644 (1963). One exception to this rule is that where a litigant has acted in bad faith, wantonly or for an oppressive r......
  • VanKirk v. Green Const. Co., 22791
    • United States
    • West Virginia Supreme Court
    • December 8, 1995
    ...(1944). See also Uniroyal, Inc. v. Chambers Gasket & Mfg. Co., 177 Ind.App. 508, 380 N.E.2d 571 (1978); Globe & Republic Ins. Co. v. Independent Trucking Co., 387 P.2d 644 (Okla.1963); City of Burns v. Northwestern Mut. Ins. Co., 248 Or. 364, 434 P.2d 465 (1967); Shamrock Homebuilders, Inc.......
  • State Ins. Fund v. GREAT PLAINS CARE CENTER, 96,024.
    • United States
    • Oklahoma Supreme Court
    • September 30, 2003
    ...in the source or nature of the obligation enforced is found in our cases. For example, in Globe & Republic Ins. Co. of America v. Independent Trucking Co., 1963 OK 274, 387 P.2d 644, an insured brought an action against the insurer to enforce an insurance policy. We said that "An express co......
  • Christian v. American Home Assur. Co.
    • United States
    • Oklahoma Supreme Court
    • July 12, 1977
    ...Ordinarily, attorney fees may not be recovered in the absence of an agreement or statutory authority. Globe & Republic Ins. Co. v. Independent Trucking Co., Okl., 387 P.2d 644 (1963). One exception to this rule is that where a litigant has acted in bad faith, wantonly or for an oppressive r......
  • Request a trial to view additional results

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