Highway Insurance Underwriters v. J. H. Robinson Truck Lines, Inc.

On Appellant’s Motion for Rehearing

The controlling words in Endorsement 77, which was attached to the policy are these: “ * * * the insured agrees to reimburse the company for any loss under Bodily Injury Liability and Property Damage Liability, which the company is obligated to pay (including reasonable expenses paid, provided demand therefor on the part of the company be made in writing within thirty (30) days after the payment of such claim if settled by agreement, otherwise, such demand to be made at the time of final payment) * * *

Under the quoted language taken together with the fact that appellant repudiated any liability under its policy, the appellee was bound to reimburse the appellant for any loss under the Bodily Injury Liability and Property Damage Liability only in case a recovery was had against appellant in the main suit brought against it by Mrs. Sina DuBois, et vir. It is quite evident that it was appellee’s position that its driver was not liable and was guilty of no act of negligence which made appellee liable and after appellant had bound and obligated itself to defend the suit, it could not breach this obligation and agree that appellee’s driver was guilty of negligence, and in making the compromise settlement appellant can only be deemed as having acted for its own interest.

Motion for rehearing refused.