Court Opinion

ID: 9460409
Source: CourtListenerOpinion
Date Created: 2023-08-04 21:49:40.111253+00
Date Added: 2024-06-11T17:36:36.614483
License: Public Domain

OPINION
FRED M. TAYLOR, District Judge:
Agricultural Insurance Company (Agricultural) issued a motor vehicle liability policy to Wesley B. Gibson, doing business as Continental Leasing Company as the named insured, from June 6, 1968 to June 6, 1969. A 1961 Plymouth automobile, owned by Gibson, was expressly included as one of the insured vehicles. The Plymouth was subsequently leased by Gibson to the United States Post Office for a period in excess of 30 consecutive days. In order to exempt the vehicle from licensing fees, it was registered with the California Department of Motor Vehicles in the name of the Post Office.
On July 13, 1968, a Post Office employee, driving the Plymouth in the course of his employment, became involved in an accident with the plaintiff, Charles Cousineau. Plaintiff Cousineau brought an action against the United States under the Federal Tort Claims Act. The defendant and third-party plaintiff, United States of America, filed a third-party complaint against the third-party defendant Agricultural Insurance Company seeking a judgment for any damages it might become obligated to pay to plaintiff, plus reasonable attorney’s fees in defending plaintiff’s action.
The plaintiff’s action against the United States was compromised for $8,250.00 with the consent and approval of Agricultural and the matter went to trial on the third-party complaint. On April 9, 1971, the District Court entered a judgment in favor of the United States on its third-party complaint against Agricultural, and the insurance company appealed to this court from said judgment.
We believe the decision in this case is controlled by Metz v. Universal Underwriters Insurance Company, 10 Cal.3d 45, 109 Cal.Rptr. 698, 513 P.2d 922 (1973) and, accordingly, the judgment of the District Court is affirmed.