American Fidelity & Casualty Co. v. Northeast Arkansas Bus Lines, Inc.

In July, 1937, appellees purchased from appellant a policy of insurance under the terms of which appellees, operating as the Northeast Arkansas Bus Lines, were indemnified against loss by reason of any damage to person or property.

March 19, 1938, W. T. Shelton claimed to have been injured while a passenger on appellees’ bus.

September 10, 1938, Shelton filed suit against ap-pellees in the Lawrence circuit court for damages growing out of his alleged injuries and recovered judgment by default for $1,000. Subsequently appellant effected a compromise settlement and paid Shelton $850.

Thereafter…