Victoria Metal Processor Co. bought an insurance policy from Nautilus Insurance Co. to provide insurance coverage to Vivify Construction for accidents involving negligence by Victoria for a construction project in which Vivify was the general contractor.
Nautilus refused to cover a lawsuit filed by a Victoria Metal Processor employee, Pablo Vieyra, who fell from a second-story scaffold because of the alleged negligent supervision by Vivify.
There were two “injury to employee” exclusions in the body of the Nautilus Insurance policy that said it didn’t apply to tort claims by the employees of any subcontractors. Vivify appealed from a judgment that concluded that Nautilus Insurance was not obligated to defend Vivify, the general contractor. It was argued on appeal that the trial court judge erred in choosing not to consider the terms of the subcontract between Vivify and Victoria.