Yorkshire Insurance Co. v. Diatom Drilling Co.
Insurers (Yorkshire Insurance Co., Ltd. and Ocean Marine Insurance Co., Ltd.) appealed a summary judgment granted in favor of Diatom Drilling Co. and Employer’s Contractor Services, Inc. Insurers sought declaratory relief regarding a CGL policy's exclusion of liability for injury or death to "leased-in employees/workers." The case stems from a 1992 accident where Randall Jay Seger, an employee leased by ECS to Diatom, was killed. The appellate court found that the "Excluding Leased-In Employees/Workers" condition unambiguously excludes claims against Diatom/ECS related to such workers. The court reversed the trial court's summary judgment in favor of Diatom and ECS and rendered summary judgment for the Insurers, declaring the exclusion valid. The award of attorney's fees to Diatom and ECS was also reversed and remanded for reconsideration.