Progressive Gulf Ins. v. Dickerson & Bowen, Inc.

Summary

The Supreme Court of Mississippi considers whether Progressive Gulf Insurance Company was obligated to defend or indemnify Dickerson & Bowen, Inc. under an automobile insurance policy after Travelers Indemnity settled a judgment against Dickerson & Bowen. The court examines policy conditions requiring notice, cooperation, and consent to payments or settlements, as well as the insured's failure to request coverage before trial. The opinion addresses the effect of those conditions on Travelers' claim for reimbursement and indemnification.

Holdings

1. An insurer is not retroactively obligated to indemnify another insurer for a judgment settlement when the insured never requested coverage or a defense, relied on another insurer for its defense, and consistently asserted a theory negating the alleged coverage.
2. The insured's failure to comply with the policy's expressly stated duties, including notice of legal action and obtaining consent before assuming obligations or making payments, supported denial of coverage under the circumstances presented.
3. The circuit court erred by granting Travelers summary judgment because the undisputed facts established that Progressive was not obligated to indemnify Travelers for the settlement.

Questions Presented

1. Whether Dickerson & Bowen's failure to request a defense or coverage from Progressive and its failure to comply with the policy's notice, consent, and other duties constituted a failure of conditions precedent to coverage.
2. Whether Progressive became obligated to defend or indemnify Travelers after the jury verdict, despite Dickerson & Bowen's consistent position that Carey was an independent contractor and its reliance on Travelers for its defense.
3. Whether the circuit court properly granted Travelers summary judgment for the settlement amount and related fees and costs.

Disposition

reversed