Opinion ID: 1935802
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Heading: Comparative liability of the two insurance companies.

Text: Trial court found Fireman's Fund insured Concrete Products, but not Smith, to the extent of $250,000. It found Dairyland insured Smith to the amount of $10,000. The parties had stipulated Smith was an employee of Concrete Products, there was no independent negligence of Concrete Products, and that Smith's sole negligence was the proximate cause of Swenson's damages. Dairyland's petition and the answer filed by the interpleaded defendant, Fireman's Fund, each raise issues of the liability of these respective insurers, and the relative order of liability if established. Under these circumstances trial court, applying the proration rule laid down in Union Ins. Co. (Mutual) v. Iowa Hardware Mut. Ins. Co., 175 N.W.2d 413 (Iowa 1970), held the two companies would be liable for Swenson's damages in the proportion of one to twenty-five. The court further determined, however, Fireman's Fund, subrogated to the rights of Concrete Products against its employee Smith to the extent of Fireman's Fund payments, could recover against Dairyland (by suing Smith) upon such subrogation claim for any amounts paid by it to the extent of Dairyland's coverage, less any proration amounts at that time already paid by the latter. Dairyland claims there should have been no proration: Fireman's Fund policy should be primarily liable. In our view the district court ruling was more favorable to Dairyland than the applicable law warrants. The proration rule is ordinarily invoked when two or more insurers insure joint tort-feasors or the same tort-feasor. See Union Ins. Co. (Mutual) v. Iowa Hardware Mut. Ins. Co., supra. But here Fireman's Fund and Dairyland each insure a separate entity or person. No claim is made that Concrete Products and Smith were joint tort-feasors. The respective liability of these insureds must therefore determine the liability of their respective insurance carriers. The common law rule holding a servant liable to his master who is not at fault for damages the latter is compelled to pay a third person because of the servant's negligence is recognized in Iowa. Graham v. Worthington, 259 Iowa 845, 146 N.W.2d 626 (1966); Rozmajzl v. Northland Greyhound Lines, 242 Iowa 1135, 49 N.W.2d 501 (1951). It follows Concrete Products could rightly cross-petition against its employee Smith, whose sole negligence caused Swenson's injury. Rule 33(b), Rules of Civil Procedure. This subrogated right of one vicariously liable for full indemnity against the actual tort-feasor is well known in our Iowa law. Federated Mutual Imp. & H. Ins. Co. v. Dunkelberger, 172 N.W.2d 137 (Iowa 1969); Weidert v. Monahan Post Legionnaire Club, 243 Iowa 643, 51 N.W.2d 400 (1952); Furnish, Distributing Tort Liability: Contribution and Indemnity in Iowa, 52 Iowa L.Rev. 31 (1966). It follows as to these insurance carriers there should be no proration. As between them, Dairyland's policy, to the extent of its limits, should be first subjected to Swenson's damages before resort is made to the Fireman's Fund policy. Numerous decisions from other jurisdictions, to avoid circuity of action, have recognized the order of liability of the insurers follows the relative liability of the insureds and have held the non-negligent employer's insurer entitled to full indemnification from the negligent employee's insurer. See Fireman's Fund Insurance Co. v. Canal Insurance Co., 411 F. 2d 265 (5 Cir. 1969); Travelers Insurance Co. v. Employers' Liability Assur. Corp., 242 F.Supp. 627 (D.Md.1965); Bituminous Casualty Corp. v. American Fidel. & Cas. Co., 22 Ill.App.2d 26, 159 N.E.2d 7 (1959); Maryland Cas. Co. v. N. J. Mfrs. & C. Ins. Co., 48 N.J.Super. 314, 137 A.2d 577 (App. Div.1958), aff'd per curiam, 28 N.J. 17, 145 A.2d 15 (1958). Despite trial court's initial proration ruling, full application of its judgment will avoid any ultimate loss to Fireman's Fund until Dairyland's limits are exhausted. Neither Fireman's Fund nor Concrete Products appeals. There is no error prejudicial to Dairyland in trial court's judgment, which reached the right destination by an unnecessary detour. Under these circumstances, the judgment below is affirmed. Trial court taxed the costs equally between Dairyland and Fireman's Fund, as both had asked for declaratory relief. Costs on appeal are taxed in the same proportion. Affirmed.