Doris Lewis, and Cross-Appellee v. Mid-Century Insurance Company, and Cross-Appellant

On February 22, 1963, Darlene Tafolla was killed in an automobile accident. At the time, she was a passenger in a vehicle owned by one Stulc and being driven by her husband, Duane Tafolla. There was then an existing automobile accident indemnity contract between Duane Tafolla and the appellee-cross-appellant Mid-Century. The appellant-cross-appellee Lewis, as Guardian of the deceased’s minor children, filed suit for the alleged wrongful death of Darlene Tafolla in a Montana state court. As against Stulc, the suit was settled. Mid-Century refused to defend the suit as against Duane Tafolla, its insured, he personally employed counsel to represent him, the state court trial was conducted, and Lewis was awarded, in her representative capacity, a judgment of approximately $90,000. Thereafter, Lewis filed her action in the District Court, undertaking to recover the full amount of the state court judgment from Mid-Century. In this suit she contended (1) that under the terms of the contract between Mid-Century and Duane Tafolla Mid-Century was obligated to indemnify Tafolla to the extent of the provided coverage limits ($25,000 for each person and $50,-000 for each occurrence) and (2)…