California Motor Transport Co., Ltd. v. Fidelity & Casualty Co. Of New York

The Fidelity & Casualty Company of New York, a New York corporation, hereafter called Fidelity, brought an action against appellants to recover of them $7,841.99, with interest and costs. Appellants, as third-party plaintiffs, served a complaint on Bayly, Martin & Fay, a California corporation, hereafter called Bayly, as third-party defendant. Appellants answered Fidelity’s complaint, Bayly answered appellants’ complaint, a trial was had, an opinion was filed, findings of fact and conclusions of law were stated, and a judgment was entered ordering, adjudging and decreeing that Fidelity recover of appellants $7,841.99, with interest and costs, .that appellants recover nothing of Bayly, and that Bayly recover costs of appellants. This appeal is from that judgment.

At all pertinent times Fidelity, Bayly and appellants were doing business in California — Fidelity as an insurer, Bayly as an insurance broker and appellants as motor carriers — and Bayly was appellants’ agent and broker for the purpose of procuring liability insurance for appellants.

On August 25, 1945, Bayly procured from Fidelity for appellants a liability policy (No. SPL 1457), whereby Fidelity insured appellants,…