Farmers Insurance Exchange v. Continental National Group

This is an action for declaratory relief brought to determine the respective liabilities of two insurance companies with respect to a cause of action for damages for personal injuries arising out of an automobile collision. Farmers Insurance Exchange (hereinafter called Farmers) commenced this action against Continental National Group, a corporation, and Continental Casualty Company, a corporation. Continental Casualty Company (hereinafter called Continental) filed a cross-complaint against Farmers for similar relief. The instant appeal is from a judgment holding in effect that Continental’s policy is primary insurance and Farmers’ policy is excess insurance.

There is no dispute about the facts giving rise to the controversy. One Matthew D. Pascal, doing business as Pascal Rentals, owned a certain truck which he rented to one Harry J. Israelsen. The latter while thereafter driving the truck with Pascal’s permission had a collision with an automobile driven by one Doris Andrade. Mrs. Andrade and her husband commenced an action against Israelsen and Pascal seeking general damages in the sum of $20,000 and other special damages in an unspecified amount. At the time of the accident…