Long Island Coach Co. v. Hartford Accident & Indemnity Co.

Headnote

Insurance (indemnity) — Highway Law — action to recover amount paid upon judgments for personal injuries ■— defense that other actions were pending against plaintiff and that amount due on policy must be apportioned ratably among judgment creditors.

Long Island Coach Co., Inc., v. Hartford A. & I. Co., 223 App. Div. 331 , affirmed.

Appeal from a judgment of the Appellate Division of the Supreme Court in the first judicial department, entered April 27, 1928, in favor of plaintiff upon the submission of a controversy under sections 546-548 of

the Civil Practice Act. The action was to recover upon a policy of insurance providing: “ The Insurers agree to indemnify the Assured against loss arising from the liability imposed by law upon the Assured for damages on account of death or bodily injuries * * *, resulting from or caused by the operation, maintenance, use or the defective construction of the motor vehicles described in the schedule annexed hereto, * * The defendant contended that under the policy and section 282-b of the Highway Law, its liability on all judgments resulting from one “ transaction ” was limited to $5,000 to be apportioned ratably among the judgment creditors according to the amounts of their respective judgments, and that plaintiff had had an accident in which many persons were injured and that the amount sought to be recovered was paid by plaintiff in satisfaction of but two judgments. The Appellate Division held that the provision of the Highway Law for apportionment ratably among judgment creditors is applicable only when the insured is insolvent.