Argonaut Midwest Insurance Company v. Morales

(Court opinion corrected 9/16/14.) Semi-truck driver's insurer filed declaratory judgment action claiming it had no duty to defend or indemnify semi-truck driver in underlying suit filed for injuries from accident when semi-truck struck vehicle. A motor carrier's responsibility for vehicle does not abate when it opts not to exercise its right to control the vehicle.Federal law controls interpretation of owner-operator agreement because agreement is "subject to" DOT regulations. Insurer's bobtail insurance police provides coverage when driver is using his truck for his own purposes, not when he is renting it to a trucking company, when federal law requires trucking company to procure its own insurance to cover driver when company is using driver's vehicle. Thus, driver's insurer has no duty to defend or indemnify truck company under driver's policy. (NEVILLE, concurring; MASON, dissenting.)