Yorkshire Insurance Co., LTD. and Ocean Marine Insurance Co., LTD. v. Roy S. Seger, Individually and Shirley Faye Hoskins, Individually and as Administrator of the Estate of Randall Jay Seger
The case involves an appeal by Yorkshire Insurance Co., Ltd., and Ocean Marine Insurance Co., Ltd., against Roy Seger and Shirley Faye Hoskins. The insurers appealed a judgment of over $26 million in actual damages related to a "Stowers" action, stemming from the death of Randall Jay Seger in a drilling accident. The core issues involved whether the insurers were unauthorized, the applicability of a "leased-in worker" exclusion in their CGL policy, and whether the Segers' settlement demands were within policy limits. The court ruled that the 1993 amendments to the Insurance Code applied retroactively and affirmed that the Segers made a sufficient settlement demand within policy limits. However, it reversed the summary judgment on coverage, finding the "leased-in worker" exclusion unambiguous and potentially applicable, and also reversed the directed verdict on damages, as a fact issue remained regarding whether the underlying judgment was the result of a "fully adversarial trial." The case was thus largely remanded for a new trial.