The Home Insurance Company v. The Aetna Casualty and Surety Company and Diamond Shamrock Corporation

Appellee, the Home Insurance Company (“Home”), sought a declaratory judgment pursuant to 28 U.S.C. §§ 2201 and 2202 to determine the extent of its liability to indemnify its insured, appellant Diamond Shamrock Corporation (“Diamond”). Jurisdiction was based on diversity of citizenship. Agreeing that no genuine issue of material fact existed, both sides moved for summary judgment. The district court granted plaintiff’s motion, ruling that the interpretation of a contract was a question of law for the court and that extrinsic evidence offered by the defendants as to the contractual intent of…