Transportation Insurance Co. v. George E. Failing Co.
Transportation Insurance Company (Transportation) appealed a summary judgment in a declaratory judgment action. George E. Failing Company (Failing) sought a declaration that it was an omnibus insured under a motor vehicle liability policy issued by Transportation to Southwestern Laboratories, Inc. An employee of Southwestern was injured by a truck manufactured by Failing and subsequently sued Failing, alleging defects. Failing contended it was covered under the policy's omnibus clause due to the alleged negligence of Southwestern's employees. The court reversed the summary judgment, ruling that Failing's potential liability arose from its own negligence, not that of Southwestern's insured parties, and therefore Failing was not an omnibus insured.