United Pacific-Reliance Ins. Companies v. Kelly

Opinion

POCHÉ, J.

This is an appeal from a judgment entered in an interpleader action.

Facts

The material facts have been submitted upon the stipulation of the parties and may be set out as follows.

[74]

In the early evening of July 1, 1977, cross-defendant George L. Kelly (hereafter respondent or Kelly), an electrician employed by Gravino Electric Company (hereafter Gravino Electric), suffered severe injuries when he was struck in front of his home by an automobile owned and operated by Peregrina Megij, an unlicensed motorist who was being given driving instructions by her passenger, Rebecca Hernandez. At the time of the accident, Kelly was working in an area between his own automobile and a truck owned by Gravino Electric, loading tools into the rear of the latter vehicle. As a result of his injuries, Kelly incurred medical expenses in excess of $20,000 and lost wages of over $25,000.

Although Megij was not covered by any type of liability insurance at the time of the accident, Hernandez, the passenger in the car, did possess coverage with Farmers Insurance for liability arising from her use of a nonowned vehicle. The applicable limit of this policy was $25,000. In addition, both Kelly’s own automobile and the Gravino truck, of which he was a permissive user, were covered by liability policies affording uninsured motorist protection of up to $15,000 each.

1

Allstate Insurance Company (Allstate) provided coverage for Kelly’s personal vehicle while cross-complainant United Pacific-Reliance Insurance Companies (hereafter United Pacific or appellant) afforded coverage to the Gravino truck.

Shortly after the accident, Kelly filed claims against Allstate and United Pacific pursuant to the uninsured motorist provisions of their policies. Pending the results of intercompany arbitration to determine whose coverage would be applicable to the accident, each of the two carriers agreed to pay respondent one-half of the limits of their respective coverage, or $7,500 apiece. Appellant was found liable through arbitration for the full amount of uninsured motorist coverage in January of 1978, and shortly thereafter reimbursed Allstate for its $7,500 payment to respondent. In the meantime, respondent had filed a claim against Hernandez and her carrier, Farmers Insurance, for the limits of the former’s $25,000 liability policy. Having been notified by appellant that it claimed a subrogation interest in the proceeds of the Hernandez liability policy, Farmers Insurance brought an interpleader action seeking to resolve the conflicting claims on that policy. Appellant responded by filing the present cross-complaint against Kelly, alleging that it was statutorily entitled to recover from the proceeds of the Farmers Insurance policy all funds paid to respondent by way of uninsured motorist coverage.