Chicken Delight of California, Inc. v. State Farm Mutual Automobile Insurance

— Declaratory relief. Two corporations, Chicken Delight of California, Inc., and Chicken Delight, Inc., an Illinois Corporation (“Chicken Delight”) appeal from an unsuccessful attempt to obtain a declaration that State Farm Mutual Automobile Insurance Company (“State Farm”) and Allstate Insurance Company (“Allstate”) should have defended them in an action for personal injuries and are responsible for reimbursing them for the cost of defense and the sum of $15,000 which Chicken Delight paid for a release.

Facts

The accident which ultimately led to this litigation happened on June 30, 1968. The victim was one Maria Radakovic, a pedestrian. She was run down by a Volkswagen automobile operated by one Robert John Hutchins. None of the parties to this litigation ever questioned the fact that the accident was a case of liability as far as the driver, Hutchins, was concerned. Eventually it was stipulated that the sum of $80,000 paid to Maria Radakovic in settlement of her claims was reasonable.

The Volkswagen which Hutchins was driving with permission at the time of the accident was registered to his mother, Maria Hutchins, and was insured by State Farm. The “per person” limit…