Globe Indemnity Company, a Corporation v. Capital Insurance & Surety Co., Inc., a Corporation

This was an action brought in the district court of Guam by Globe Indemnity Company against Capital Insurance & Surety Co., Inc., to recover judgment for money paid to settle claims of third persons. The appeal is by Globe from a judgment in its favor, but for considerably less than the sum sought. The district court had jurisdiction under 48 U.S. C.A. § 1424(a) and Sections 62 and 82 of the Code of Civil Procedure of Guam. This court’s jurisdiction of the appeal rests upon 28 U.S.C.A. §§ 1291 and 1294 (1).

The case was submitted to the district court upon a statement of agreed facts. Briefly, it appears that one Cardan negligently drove an automobile on the streets of Guam, severely injuring several persons and damaging their property. At the time, he was working for Philco Corporation and the automobile belonged to the Federal Automotive Services from whom it had been leased by his employer. Federal and Philco both had policies of liability insurance covering such accidents. The one policy, issued by Capital, provided insurance not only to Federal as the named insured but also, through an omnibus clause, to lessees and persons to whom the lessees entrusted the use of Federal’s…