Hallmark Insurance v. Crary Enterprises, Inc.

The sole issue presented on appeal is whether the nonliability status of an employee as an insured accrues to the benefit of his employer when the status is obtained independent of such employment.

In reaching its decision the trial court correctly acknowledged the general rule that an insurer cannot recover by right of subrogation from its own insured. Much emphasis was laid on the case of New Amsterdam Casualty Co. v. Homans-Kohler, Inc. (D. C. R. I. 1969), 305 Fed. Supp. 1017, subsequent action (1970), 310 Fed. Supp. 374, affirmed (1st Cir.), 435 Fed. 2d 1232. See also: 6A Appleman,…