PREFERRED RISK MUTUAL INSURANCE CO. v. HEDEEN

No. 74-1479.

508 F.2d 421 (1975)

PREFERRED RISK MUTUAL INSURANCE COMPANY, Garnishee-Appellant, v. M. Sidney HEDEEN and Farmers Insurance Exchange, Garnishee-Appellees.

United States Court of Appeals, Eighth Circuit.

Decided January 2, 1975.

Rehearing and Rehearing Denied January 24, 1975.


Attorney(s) appearing for the Case

Sheldon D. Karlins, Minneapolis, Minn., for garnishee-appellant.

Thomas J. Battis, St. Paul, Minn., for garnishee-appellees.

Before MATTHES, Senior Circuit Judge, and ROSS and STEPHENSON, Circuit Judges.


Rehearing and Rehearing En Banc Denied January 24, 1975.

STEPHENSON, Circuit Judge.

The sole question on this appeal is which of two insurance companies is liable for a judgment entered against a vehicle driver. The trial court, applying Minnesota law, held that appellee insurance company, which withdrew from active defense of the judgment debtor after discovering a policy exclusion, was not estopped from denying liability where actual prejudice was not shown...

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