Real v. United States Fire Insurance Crum & Forster

MEMORANDUM OF OPINION AND ORDER

This is an insurance coverage dispute arising from an automobile accident. In an earlier state court proceeding, plaintiffs obtained a personal injury judgment against Manke Trucking (“Manke”) and Gilbert Vidrios, the employee of Manke operating the truck involved in the accident. Plaintiffs now seek to recover the unpaid portion of the judgment against two insurance policies issued by United States Fire Insurance Company Crum & Forster Insurance (“U.S. Fire”) to Xtra Corporation (“Xtra”), the company that leased to Manke the trailer pulled by Vidr-ios. Xtra obtained a dismissal with prejudice from the state court proceeding and is not a defendant in this action. Plaintiffs and defendant have made cross-motions for summary judgment.

I. FACTUAL BACKGROUND

On October 4, 1994, Penney Del Real was killed in a multi-vehicle accident. Plaintiffs filed a wrongful death action in the Superior Court of California, County of Sacramento, against Manke Trucking (“Manke”); Gilbert Vidrios, Manke’s em ployee driving the truck involved in the accident; and Strick Leasing (“Strick”), a subsidiary of Xtra Corporation (“Xtra”), the owner-lessor of the trailer…