Norfolk And Western Railway Co. v. Hartford Accident And Indemnity Co.

420 F.Supp. 92 (N. Dist. In. 1976)

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Nature of the Case

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Facts

P is a railroad corporation. D is an insurance company. D issued a multiple liability insurance policy to P. The scope of the policy included all sums, which the insured was legally obligated to pay because of bodily injury or property damage arising out of ownership, maintenance or use of any automobile. The parties insurance not only covered P but its employees also. A truck owned by P, operated by one of P’s employees, was involved in a collision with a car operated by Norbert Herman. Herman sued, and the jury gave him a verdict of $67,000 in compensatory damages and $200,000 in punitive damages. D paid the compensatory award but refused to pay the punitive part of the judgment. Eventually, P and D each agreed to pay ½ of the punitive damages with a reservation of rights to determine the issue in court. The $200,000 was negotiated down to $187,500. P then sued D seeking reimbursement of his $93,750.