Becker

On October 15, 1965, plaintiff Paul A. Becker suffered substantial injuries when he was struck by a pickup truck owned by Sanford-Robertson Interiors, a partnership. The driver was operating the vehicle in the course and scope of his employment for the partnership and there was no issue of his liability. Donald Bruce Sanford, Cave R. Sanford, Jr., Kimba Sanford and Cave Andy Sanford, Sr., were the general partners.

State Farm Insurance Companies had issued a policy of automobile insurance to the partnership which provided coverage for all defendants with limits of $100,000 for injury to a single person. Donald Bruce Sanford and his wife also had a policy of liability insurance with State Farm with similar limits. In a settlement agreement State Farm agreed to pay the full $100,000 to Becker as the limit of liability due under the partnership policy and further agreed that it would pay the limits of the other policy (an additional $100,000) if the court determined the policy afforded coverage for this accident under Sanford’s policy. In a suit for declaratory relief the policy was submitted to the court for determination of coverage. The trial court held the policy did…