Gulf Insurance Company v. Ronald Tilley, Carol Jo Tilley, Marcella Smith (A Minor), Patricia A. Smith

Plaintiff insurer, a Texas corporation, filed a diversity action seeking a declaratory judgment that the homeowner’s policy it issued to Mr. and Mrs. Ronald Tilley, Indiana citizens, did not apply to a certain accident. On October 9, 1964, Mrs. Patricia Smith Wood employed Mrs. Tilley to be a baby-sitter for her two and one-half year old daughter, Marcella Smith. Mrs. Wood left her child at the Tilley residence about 8:00 a. m. Two hours later, Mrs. Tilley decided to prepare breakfast for herself and a guest. Mrs. Tilley plugged an electric percolator into a wall outlet and placed it on a…