Fisher

Eddie Peyton was a used car dealer doing business as GMC Motors, Inc., and was insured by Allstate Insurance Co. (hereinafter Allstate). Roy Lee Fisher was employed by Peyton and while driving an automobile owned by Peyton was involved in an accident on October 23, 1969, with Ed and Dorothy Platt (hereinafter the Platts).

On November 17, 1969, the Platts filed a complaint in the Superior Court for the County of Los Angeles for damages for personal injuries and property damage incurred in the collision with Fisher. The complaint alleged that Fisher was operating Peyton’s vehicle with his consent and that the accident was the result of Fisher’s negligent driving while acting as the agent of Peyton in the course of his employment.

Allstate retained attorneys Grogan and Hogan to represent Peyton, and attorneys Parker, Stanbury, McGee and Roberts to represent defendant Fisher. Both defendants were served and filed answers. Peyton denied permissive use and agency.

On December 30, 1970, approximately one year after the filing of the Platts’ complaint, Allstate filed its complaint for declaratory relief against the Platts and Roy Lee Fisher. The complaint alleged in substance…