State v. Northwestern Pacific Indemnity Co.

The issue in this case is whether Northwestern Pacific Indemnity Company (Northwestern) had a duty to defend its insured, the state of Oregon. The trial court sustained Northwestern’s demurrer to the state’s second amended complaint, holding that the complaint did not state a cause of action and that Northwestern had no duty to defend. ORS 16.260(6), infra. Judgment was entered on the demurrer,1 and the state appeals. We affirm.

This action follows two prior actions. In 1973, Clarence Berg, the state’s employee, was injured when the highway "roller” which he was operating turned over. Berg…