Government Employees Insurance v. Carrier Insurance

Introduction

This is a case of first impression involving a dispute between two insurance companies in a declaratory relief action as to whose policy is primary and whose is excess. One of the insurance policies covers the owner (lessor) of a passenger-type automobile, rented on a daily basis, while the other policy covers the operator (lessee).

The Case

Plaintiff-respondents Government Employees Insurance Company (hereinafter Government Employees) and Henri Waksberg (hereinafter Waksberg) filed a “Complaint for Declaratory Relief,” naming as defendants, appellants Carrier Insurance Company (hereinafter Carrier), Budget Rent-A-Car (hereinafter Rent-A-Car) and Rita Green (hereinafter Green).

The complaint alleges that plaintiff Waksberg rented a certain Rambler private passenger automobile for a three-day period from its owner, Rent-A-Car. While operating the Rambler, Waksberg was involved in an accident with a pedestrian, Green.

Government Employees sought a court declaration that Carrier’s policy covering the automobile’s owner, Rent-A-Car (lessor) was primary, while its policy covering the operator Waksberg (lessee) was excess for any claims Green may have against…