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TRANSAMERICA INSURANCE CO. v. J. HUNGERFORD SMITH CO.

Nos. 20502, 20503.

437 F.2d 48 (1971)

TRANSAMERICA INSURANCE COMPANY, Plaintiff-Appellant, v. J. HUNGERFORD SMITH COMPANY, Inc., Defendant-Appellee-Appellant, and American Mutual Liability Insurance Company, Defendant-Appellee. J. HUNGERFORD SMITH COMPANY, Inc., Defendant-Appellant and Cross-Appellee, v. AMERICAN MUTUAL LIABILITY INSURANCE COMPANY, Defendant-Appellee, and Transamerica Insurance Company, Plaintiff-Appellee and Cross-Appellant.

United States Court of Appeals, Sixth Circuit.

January 27, 1971.

Attorney(s) appearing for the Case

Ralph W. Farmer, Dyersburg, Tenn., for Transamerica Ins. Co.; M. Watkins Ewell, Sr., Ewell & Ewell, Dyersburg, Tenn., on brief.

Lawson F. Apperson, Memphis, Tenn., for J. Hungerford Smith Co., Inc., and others; Martin, Tate, Morros & Marston, Memphis, Tenn., on brief.

Thomas H. Rainey, Jackson, Tenn., for American Mutual Liability Ins. Co.; Spragins, Menzies & Rainey, Jackson, Tenn., on brief.

Before WEICK, CELEBREZZE and PECK, Circuit Judges.

WEICK, Circuit Judge.

The controversy in this case is between two liability insurance companies which issued large policies of insurance to Smith. Each claims that the other is liable to pay the damages sustained by him. There can be no question that one of them is liable.

Smith, the insured, was engaged in the manufacture of fruit syrups and flavoring for soda fountains and the ice cream industry. In the regular course of his business he manufactured a product...

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