National Union Fire Insurance Co. v. St. Paul Fire and Marine Insurance Co.

This is a direct appeal from a judgment that determined that St. Paul Fire and Marine Insurance Co. (St. Paul) was not liable to National Union Fire Insurance Co. (National Union) in a controversy involving coverage of their respective automobile liability policies. Jurisdiction below rested on diversity of citizenship, 28 U.S.C. § 1332 . The appeal is before us as one from a final judgment, 28 U.S.C. § 1291 .

Mrs. Dorothy Daly was involved in an accident while she was driving an automobile with her husband’s consent which had been leased by him from ORMCO Leasing Corporation (ORMCO), a company engaged in the business of leasing motor vehicles. Mrs. Daly’s husband was insured by National Union under a General Automobile Comprehensive Liability Policy. ORMCO was insured by St. Paul under a Multiple Coverage Policy. As a result of the accident, a suit for personal injuries was instituted by two third parties against the Dalys. National Union defended the suit and settled it for $35,000 with costs of $3,-680. This action was filed by National Union to recoup its loss from St. Paul.

ORMCO leased the automobile, a 1964 Cadillac four-door sedan to Robert R. Daly, d. b. a. Slip Form…