Alliance Syndicate, Inc. v. Parsec, Inc.

Following an accident in which Henry Smith was injured while working in a railyard, Smith brought suit against a number of entities, including Parsec, Inc. (Parsec). Smith later entered into a $2.5 million settlement with Parsec and Parsec as indemnitor of CSX Corporation (CSX). During the pendency of Smith’s suit (the underlying case), plaintiff Alliance Syndicate, Inc. (Alliance), brought a declaratory judgment action against its insured, defendant Parsec, Inc. (Parsec), seeking a declaration as to Alliance’s obligation to defend or indemnify Parsec in the Smith suit under a general…