Union Electric Company v. Pacific

This is an action by insured, Union Electric Company, against insurer, Pacific Indemnity Company, to recover under a Manufacturers'
and Contractors' Liability Policy a sum paid by Union Electric Company in settlement of an action against it which the insurer
had refused to defend on the ground that the policy did not provide coverage for the occurrence and injury that formed the
basis of the action settled by the insured, Union Electric Company. From a judgment of $12,554 in favor of insured the insurer
appealed. The amount of the judgment does not seem to be contested. The only issue for determination is whether the action
settled by the insured is within the coverage of the policy. Hereinafter, we shall refer to Union Electric Company as the
insured, Pacific Indemnity Company as the insurer and Davey Tree Expert Company as Davey. The insured and Davey executed a written contract dated March 18, 1960 which by its terms was effective from March 7, 1960
until March 1, 1961 inclusive. In this contract it was provided that Davey shall cut and trim trees and dispose of all trimmings
as required where designated by an authorized representative of the insured along the distribution and transmission lines
of the insured located in the City of St. Louis and St. Louis County. The contract provided that Davey shall furnish for that
purpose a sufficient number of supervisors, motor cars for the use of said supervisors, also furnish tree trimmer foremen,
tree trimmer journeymen, tree trimmer apprentices, and brushcutters to handle such work expeditiously; together with sufficient
trucks for the transportation of men and removal of brush; and all equipment, tools, and supplies which may be necessary for
the doing of any and all work required to be done by Davey under the terms of the agreement.