Insurance Company of North America v. G.I. Trucking Company

FACTS

On April 19, 1988, G.I. Trucking Company (“G.I.”) transported a shipment of intraocular lenses from Los Angeles to Calexico, California, for Eye Technology, Inc. (“Eye Tech”). The shipment was damaged, and Eye Tech sought and received compensation for its damages from its insurer, Insurance Company of North America (“INA”). Having paid Eye Tech’s claim, INA became the subrogee of Eye Tech’s rights against G.I.

On December 2, 1988, Recovery Services, International (“RSI”), INA’s subrogation unit, sent a letter to G.I. stating:

On March 3, 1989, INA paid Eye Tech $97,500, and on March 27, 1989, RSI forwarded a “Standard Form for Presentation of Loss” to G.I., claiming entitlement to $100,000.00. On April 4, 1989, G.I. denied responsibility and refused to pay the claim. The parties corresponded over the course of several months, but G.I. continued to deny any liability on INA’s claim.

On April 4, 1991, INA filed suit against G.I. in California State court. INA asserted two causes of action, one for carrier liability and one for negligence. G.I. denied the allegations and removed the action to federal district court. G.I. then filed a motion for summary judgment, alleging…