American Indemnity Lloyds v. Travelers Property & Casualty Ins. Co.

GARWOOD, Circuit Judge:

In this Texas law diversity case, plaintiff-appebant American Indemnity Lloyds (AIL) seeks to recover from defendant-appellee Travelers Property & Casualty (TPC) one-half of the sums AIL paid in settlement and expended in defense of a personal injury damage suit against a contractor who was both the named insured in TPC’s policy and an additional insured in AIL’s policy. The named insured in AIL’s policy was the subcontractor whose employee had brought the underlying suit for on-the-job injuries which were within the scope of the subcontractor’s agreement to indemnify…