Condor Insurance v. Williamsburg National Insurance

Condor Insurance Company (Condor) appeals the judgment entered following the successful demurrer of Williamsburg National Insurance Company (Williamsburg) to Condor’s complaint for declaratory relief. In this opinion we consider the effect of the Public Utilities Commission (P.U.C.) endorsement contained in the automobile liability insurance policy of a P.U.C. permit holder, which provides, among other things, minimum amounts of liability insurance.

Facts

The allegations of Condor’s first amended complaint, which we must accept as true for purposes of reviewing the judgment (Serrano v. Priest (1971) 5 Cal.3d 584, 591 [ 96 Cal.Rptr. 601 , 487 P.2d 1241 , 41 A.L.R.3d 1187 ]), reveal the following facts: Condor issued an automobile liability insurance policy to Ann B. Mabry, doing business as Sunshine Express, with liability limits of $250,000 per person and $500,000 per accident. Mabry owned the tractor/trailer rig insured under and described in the Condor policy (the Mabry Truck). Sandra Musial, Mabry’s employee, was operating the Mabry Truck on October 9, 1991, when it collided with a vehicle driven by Greg Leamon.

At the time of the accident, Mabry and Musial (who…