United States Fidelity and Guaranty Company, a Corporation v. Stewart's Downtown Motors

United States Fidelity and Guaranty Company (Fidelity) appeals from an adverse judgment in an action for declaratory relief. Jurisdiction is based upon diversity of citizenship. We are affirming. We state the facts, as found by the court.

On September 21, 1961, but under date of September 5, 1961, and effective for one year beginning August 22, 1961, there was delivered to appellees, Stewart’s Downtown Motors and others (the insured), a comprehensive general automobile liability policy. The insured are eighteen individuals and corporations engaged in the business of automobile dealers, and other businesses, and they owned or possessed between sixty and one hundred automobiles at any one time. The policy was issued by Fidelity, but obtained through Copperstate Insurance Agency of Phoenix, Arizona. Fidelity is a Maryland corporation, having its principal office in Baltimore. Although it has an office in Arizona, it does not do business directly with the public, but requires that the person seeking to obtain insurance obtain it through one of its agents. Copperstate is such an agent. It is characterized by Fidelity as an independent insurance agent. It is an Arizona corporation of…