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OAKRIDGE COM. AMB. SERV. v. U.S. FID. & GUAR.

563 P.2d 164 (1977)

278 Or. 21

OAKRIDGE COMMUNITY AMBULANCE SERVICE, Inc., a mon-profit corporation, Appellant, v. UNITED STATES FIDELITY AND GUARANTY COMPANY, a corporation, Respondent.

Supreme Court of Oregon, In Banc.

Decided April 19, 1977.

Attorney(s) appearing for the Case

Arthur C. Johnson, Eugene, argued the cause for appellant. With him on the briefs were Charles G. Duncan, and Johnson, Harrang & Mercer, Eugene.

Edward V. O'Reilly, Eugene, argued the cause and filed a brief for respondent.

HOLMAN, Justice.

This is an action by an ambulance service (insured) against its automobile liability insurance carrier (insurer) to recover expenses and reasonable attorney fees incurred in defending a wrongful death action. Judgment was entered for insurer after its demurrer to insured's complaint was sustained and insured refused to plead further. Insured appeals.

The policy included the following provisions:

"[Insurer agrees to] pay on behalf...

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