Hales v. North Carolina Insurance Guaranty Ass'n

MITCHELL, Justice.

The primary issue before us in this case is whether the plaintiffs’ claims are barred by the doctrines of res judicata or collateral estoppel. We hold that they are not; therefore, we reverse the decision of the Court of Appeals.

The pleadings and forecast of evidence before the trial court tended to show the following. William I. Hales, the father of the plaintiff W. Brian Hales, procured automobile liability insurance through Cotton Insurance and Realty Co. (hereinafter “Cotton”) in 1968. Due to an arrangement between Cotton and Interstate Casualty Insurance Company…