Sentry Select Insurance v. Fidelity Guaranty
Opinion
Opinion
Statement of Facts
John’s Trucking, Inc. (“JTI”) offers trucking services and owns a fleet of tractors and trailers. JTI fulfills most of its hauling contracts by subcontracting the work to independent truckers. Those truckers generally retain 95% of the hauling contract’s value, with JTI taking 5%. If the truckers rent trail- ers from JTI to complete the contract, JTI’s percentage rises to 25%. JTI does not rent trailers to anyone other than its sub- contractors, and the vast majority of its fleet is used by those subcontractors. Fidelity & Guaranty Insurance Co. (“Fidelity”) insured JTI for $1 million of liability coverage per accident.
Richard Justice (“Justice”), an independent trucker, owned a Peterbuilt tractor. While fulfilling a contract for JTI and SENTRY SELECT INS. v. FIDELITY & GUARANTY 7827 renting a JTI trailer and semitrailer, Justice negligently caused an accident. John Deere Insurance Co. (“John Deere”) pro- vided $750,000 of liability coverage per accident. Sentry Select Insurance Co. (“Sentry”) bought John Deere after the accident. Plaintiffs involved with the accident settled with Sentry for $600,000.