United States v. Transport Indemnity Company

This is an appeal from a declaratory judgment that insurer was liable under a motor vehicle insurance policy to indemnify a permissive user for tort liability despite apparent conflict with workmen’s compensation law. We affirm.

Facts

Ringsby Truck Lines (Ringsby) was hired by the United States to transport missiles. David Jinks was employed by Ringsby. Missiles being unloaded from a Ringsby truck by the United States fell on Jinks, injuring him. Jinks sued the United States under the Federal Tort Claims Act, 28 U.S.C. §§ 1346 (b), 2671, and 2680, alleging negligence in the unloading.

Transport Indemnity (Transport) carried Ringsby’s workmen’s compensation and liability insurance. Transport agreed to defend the United States against Jinks’ action, reserving the right to later contend that it had no obligation to indemnify the United States under the Ringsby liability insurance policy.

Jinks received $11,800 in workmen’s compensation and settled the tort suit for $59,-000.

Proceedings Below

The United States brought this suit in federal district court seeking declaratory judgment under 28 U.S.C. § 2201 , Fed.R. Civ.P. 57, on its right to be indemnified. The district court had…