Banks v. Travelers Ins.

66 F. Supp. 801, 1946 U.S. Dist. LEXIS 2425
CourtDistrict Court, W.D. Louisiana
DecidedJuly 22, 1946
DocketNo. 1446
StatusPublished

This text of 66 F. Supp. 801 (Banks v. Travelers Ins.) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Banks v. Travelers Ins., 66 F. Supp. 801, 1946 U.S. Dist. LEXIS 2425 (W.D. La. 1946).

Opinion

DAWKINS, District Judge.

Plaintiff, on behalf of herself and a minor child, brought this suit in tort against the liability insurers alone of the respective owners of a truck and an automobile, whose collision caused .the death of the husband and father. Defendant Travelers Insurance Company (herein called Travelers) called in the owner of the passenger automobile, G. H. Neighbors, the insured of the other defendant, Associated Indemnity Corporation (herein called Associated), as a third party defendant, and prayed judgment against him and Associated for whatever sum might be recovered against Travelers. In the alternative, Travelers asked that its liability be restricted to one-half of the first $10,000 recovered, on the claim of solidary responsibility to that extent with the other insurer, and finally to 1%5, or the proportion which its policy ($10,000) bore to the total (Associated’s policy was $25,-000) of the two policies, $35,000.

Associated and third party defendant' pleaded that the deceased, at the time of his injury and death, was an employee of and in the course of his employment with Neighbors, and could assert no claim in tort against these defendants. A demand for summary judgment was made and, after hearing, overruled, with the statement that, if there was a verdict adverse to the contention of defendant, Associated, the Court might reconsider the matter on motion for a new trial, or for judgment notwithstanding the verdict.

A verdict was returned for the sum of $25,000, with the right to plaintiff to execute against either defendant to the extent of their policies, and “as between the insurance companies, the Travelers Insurance Company shall pay $10,000, and the Associated Indemnity Company shall pay $15,-[803]*803000.” The division of liability in this form was pursuant to instructions of the Court.

Counsel for Travelers has moved that the verdict and judgment to be rendered thereon be recast and modified as to these provisions which follow the first sentence in which the total sum of all damages was fixed by the jury “so that the total sum of $25,000 * * * is apportioned * * * against the Travelers Insurance Company and the Associated Indemnity Corporation, in solido for the sum of $10,000, and against the Associated Indemnity Corporation for the further sum of $15,000 * * *” and if the Court does not set aside the attempted apportionment as void, then it be revised so as to require payment in the ratio of 10/35 of the $25,000 by Travelers and 2%5 by Associated. In other words, Travelers insists that of the $25,000, it shall pay only $5,000 on the theory that the liability is solidary for $10,000, which must be shared equally, with Associated paying the remaining $15,000, and the alternative, that it pay 1%5 of $25,000 or $7,142.83.

Counsel for Associated has also moved for judgment in its favor, notwithstanding the verdict, on the ground the evidence shows, without material contradiction, that deceased, at the time of the accident, was an employee of Neighbors and in the course of his employment, and his widow and child are restricted to the benefits of the State Workmen’s Compensation Law. Act No. 20 of 1914.

Counsel for Travelers, both orally and in brief, has presented extensive argument and authorities in support of his contention as to the apportionment of the judgment, but none of the cas'es involves a factual situation like the present one. In those there were either conventional undertakings carrying solidary liability to a common obligee, or the insurer and insured were held to that type of responsibility. In this case there was no contractual relation between plaintiff’s husband and either of the defendant insurance companies. Her right to pursue them is the creature of a procedural statute, but for which she would first have had to obtain judgment against the insured as tort-feasors before pursuing the insurers. It follows therefore that the controlling principle is the legal rights and liabilities as between the principals or insured, tort-feasors, limited, of course, in so far as execution of any judgment in favor of plaintiff may be concerned in this case, to the maximum amounts of the policies. Beyond the policies, while each insured is liable in solido for the full amount of the judgment (or would be if they were present in the case) yet as between themselves, contribution takes place in the case of mutual negligence, to the extent of one-half for each offender. Since neither tort-feasor was sued their sureties step into their shoes and must respond, again within the limits of their policies, in the same manner and to the same extent as their principals, that is, since the total judgment is $25,000 the portion of each insured would be $12,-500, and their insurers, if their -policies were equal to or exceeded the last-mentioned sum, would each have to contribute that amount in satisfaction of the judgment. However, since Travelers’ policy is limited to $10,000 it can not be compelled to pay more than that sum and the balance of $15,000 will have to be satisfied by the Associated, whose policy was $25,000. The liability of the insurers to the plaintiff is, of course, in solido, just as would be that of the insured, but this arises, not from any promise or legal obligation to the plaintiff, but because of their undertaking to satisfy the liabilities of their insureds. A conclusive demonstration of the correctness of this view is that, if Associated were compelled to pay the whole $25,000, it could in turn, if timely asserted, compel Travelers’ insured, the Lynn Company, to stand one-half, or $12,500, which Travelers would jhwe to protect to the extent of $10,000. The motion of Travelers will therefore have to be denied.

Coming now to the motion by defendant, Associated, for judgment in its favor, notwithstanding the verdict, we have these undisputed facts:

Deceased, along with others, was employed on a daily wage basis by Neighbors, the insured of this defendant, to construct in Mississippi a derrick to be used in drilling an oil well. His home and those of the others were in Caddo Parish, Louisiana, which was also the home and domicile of their employer. The employment required [804]*804that Banks and his coworkers be transported more than 200 "miles to the place where he was to work and when finished that he be brought back to his home, with credit on his wages while making said trips of one full day’s pay. He and his fellow workers, about the middle of December, were transported in a passenger automobile of the employer, driven by his foreman, to the place of employment, where work was continued thereon for several days. Freezing weather set in, causing the employees to remain idle a good part of the time. They were paid only for the days any portion of which was spent on the job; otherwise they were on their own expenses without compensation, some 200 miles away -from home. Finally, on the 28th of December, it was agreed that they should return to their homes in Caddo Parish until the weather cleared, as it was conceded they could not work on a derrick covered with ice. Neighbors instructed the same foreman to, in the same car, take them first to his office in Bossier City to receive their wages less advances on the job, for the work that they had done, and thence to their homes.

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Bluebook (online)
66 F. Supp. 801, 1946 U.S. Dist. LEXIS 2425, Counsel Stack Legal Research, https://law.counselstack.com/opinion/banks-v-travelers-ins-lawd-1946.