Roy Seger v. Yorkshire Insurance Co., Ltd., and Ocean Marine Insurance Co., Ltd.
The parents of a deceased derrick hand, Randy Seger, brought a wrongful death action against Diatom Drilling Co., the owner of the rig where their son died. Diatom's commercial general liability (CGL) insurers, Yorkshire Insurance Co. and Ocean Marine Insurance Co., refused to defend, citing lack of coverage. After obtaining a judgment against Diatom, Randy's parents, Roy Seger and Shirley Faye Hoskins (the Segers), filed a Stowers action against the insurers. The central issue was whether Randy was a 'leased-in worker,' which would exclude coverage under Diatom's CGL policy. A jury initially found he was not, but on appeal, this Court, after reviewing the burden of proof for coverage and policy exclusions, determined that the evidence conclusively established Randy was a 'leased-in worker' as a matter of law. Consequently, coverage was precluded, and the Stowers action failed, affirming the court of appeals' judgment that the Segers take nothing.