Standard Accident Ins. Co. v. Roberts

132 F.2d 794 (8th Cir. 1942)

Facts

Personal injury judgments were obtained against Roberts (D) by the Primms (D1). The Standard Accident Insurance Co. (P) filed a declaratory judgment against them to avoid liability on a policy held by D. P's petition was dismissed even though the trial court found that the cause of the injuries to D1 was not within the coverage of the policy. The court determined that P had full knowledge of the circumstances of the accident, had assumed and retained control of the investigation concerning the accident and that P was estopped from denying liability to the detriment and prejudice of D. P appealed the court's rulings on estoppel and prejudice to D. Both D's contested the appeal and argued that the policy should have been reformed, that the court should allow reasonable attorney fees and penalty, and that the policy did cover the accident. These latter contentions were never raised at trial.