National Farmers Union Property and Casualty Company v. Laurence Colbrese, Jr.

The appellant, defendant below, appeals from the District Court’s denial of its motion for summary judgment and the entry of judgment in favor of appellee. The District Court’s jurisdiction was based upon diversity of citizenship of the parties and the requisite amount in controversy, 28 U.S.C. § 1332 , and our power of review is conferred by 28 U.S.C. § 1291 .

On December 3, 1960, the appellee’s son was killed in an automobile accident, and appellee instituted suit for alleged wrongful death in a Montana state court. In that suit, the defendant was Jerry Kinney, a minor who was operating the automobile in which the deceased was riding as a passenger at the time of the fatal accident. The appellant, which had issued automobile indemnity insurance policies to Jerry Kinney’s father, denied obligation and refused to furnish assistance in defense of the state court action. The parties to that action agreed that the state court should enter a judgment for $18,850 in appellee’s favor. Appellee then gave Jerry Kinney a satisfaction of the judgment in exchange for an assignment in which Jerry Kinney transferred his rights against appellant to the appellee. This action followed.

Jerry…