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MILBANK MUT. INS. CO. v. U.S. FIDELITY

No. CO-82-469.

332 N.W.2d 160 (1983)

MILBANK MUTUAL INSURANCE COMPANY, Respondent, v. UNITED STATES FIDELITY AND GUARANTY COMPANY, et al., Appellants, Philip Carlton Solum, Respondent, Township of Cromwell, Respondent, Charles Virgil Jensen, by Delores Winjum, his guardian ad litem, Respondent, Rebecca Marie Jensen, by Charles B. Odegaard, her guardian ad litem, et al., Respondents.

Supreme Court of Minnesota.

April 1, 1983.

Attorney(s) appearing for the Case

Cahill Law Offices and Steven J. Cahill, Moorhead, for appellants.

Vogel, Brantner, Kelly, Knutson, Weir & Bye and Carlton J. Hunke, Fargo, N.D., for Milbank Mutual Ins. Co.

Dosland, Dosland & Nordhougen, and Duane A. Lillehaug, Moorhead, Arvesen, Donoho, Lundeen, Hoff, Svingen & Athens and Norman D. Arvesen, Fergus Falls, for Solum.

Kennedy & Nervig and Charles R. Kennedy, Wadena, for Cromwell Tp.

Rufer, Hefte, Pemberton, Schulze, Sorlie, Sefkow & Kershner and Gerald S. Rufer, Fergus Falls, Gjevre, McLarnan, Hannaher, Vaa, Skatvold & McLarnan and Alden H. Gjevre, Moorhead, for Jensen.

Considered and decided by the court en banc without oral argument.

KELLEY, Justice.

In this declaratory judgment action, United States Fidelity and Guaranty Company (USF&G) appeals from an order of the Clay County District Court granting judgment notwithstanding the verdict of the jury to respondent Milbank Mutual Insurance Company (Milbank). The trial court held that USF&G, as the liability insurer of an employer who had permitted one of its employees to operate one of its vehicles, was the primary liability insurer obligated...

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