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AMERICAN GUARANTEE v. CHANDLER MFG. CO.

No. 90-147.

467 N.W.2d 226 (1991)

AMERICAN GUARANTEE AND LIABILITY INSURANCE COMPANY, A New York Corporation, Appellant, v. CHANDLER MANUFACTURING CO., INC. and Louis Liska, Defendants, and Maxwell City, Inc., d/b/a Craft Industries and Illinois Industrial Tool, Appellees.

Supreme Court of Iowa.

March 20, 1991.

Attorney(s) appearing for the Case

Steven K. Warbasse, Cedar Rapids, for appellant.

Jerry L. Schnurr, III of Trevino, Leehey & Schnurr, Fort Dodge, for appellees.

Considered by HARRIS, P.J., and SCHULTZ, LAVORATO, NEUMAN, and ANDREASEN, JJ.

SCHULTZ, Justice.

This appeal presents issues arising from a cooperation clause in a liability insurance policy issued by American Guarantee and Liability Insurance Company (American). A coverage dispute arose as an aftermath of a products liability suit involving a defective battery charger that caused a fire loss. Both the manufacturer, Chandler Manufacturing Co., Inc. (Chandler), and distributor, Maxwell City, Inc. (Maxwell), of the battery charger had a judgment...

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