American Motorists Insurance v. Underwriters at Lloyd's London Subscribing Certificates LC 26999, 27001 & 27002

This is an appeal from a judgment in a declaratory relief action determining the respective obligations of several insurers to satisfy the liability of an operator of a motor vehicle for bodily injury and property damage due to an automobile accident.

On September 29, 1956, Harvey L. Snyder, an employee of Dilectron and Gudeman companies, on behalf of his employer, rented a truck from its owners, Harry and Rachel Fox doing business as Equip Rent Company. While using the rented vehicle in the course of his employment, Snyder collided with a vehicle operated by Mary Contreras, which vehicle in turn collided with one owned and operated by Israel Shahon. As a result of this collision, Mary Contreras, by her guardian ad litem, commenced an action in the Superior Court for the County of Los Angeles, for damages for bodily injuries, and named as defendants, Harvey L. Snyder, Gudeman Company and Harry and Rachel Fox doing business as Equip Rent Company. American Motorists Insurance Company (hereinafter American), the insurer of Snyder’s employer, retained counsel who undertook the defense of Snyder and his employer; Certain Underwriters at Lloyd’s London (hereinafter Underwriters), the…