Prime Insurance Co. v. Wright

Dist. Ct. did not err in finding in favor of defendant, who obtained $400,000 default judgment in personal injury action arising out of car accident with insured’s truck driver, even though plaintiff sought finding in instant declaratory judgment action that certain endorsement in insurance policy issued to insured did not entitle defendant to any proceeds under policy. Under instant endorsement, plaintiff agreed to pay any judgment resulting from negligence in operation or use of insured’s motor vehicle subject to financial responsibility requirements of sections 29 and 30 of Motor Carrier Act (Act). Endorsement applied, where record showed that: (1) accident occurred, while insured’s truck driver, who had driven from Illinois to Indiana to deliver first load, had empty truck but was on route in Indiana to pick up second load for return trip to Illinois; and (2) accident occurred during interstate journey that included arrangements for interchange of property, which in turn was subject to financial responsibility requirements set forth in Act. Ct. further observed that plaintiff was not entitled to re-litigate state court entry of default judgment, even though insured did not cooperate with plaintiff prior to entry of default judgment.