Universal Underwriters Insurance Company v. Pan American Insurance Company

DYER, Circuit Judge.

While Suell, an employee of Holly Motor Company, was returning customer Bagwell’s car to him after it had been repaired, a collision occurred resulting in personal injury to Beleck. Holly’s liability carrier, appellee Universal, settled Beleck’s claim and then recovered judgment from Bagwell’s liability carrier, appellant Pan American. This appeal ensued. We reverse.

Bagwell is the owner of a private automobile purchased from Holly Motor Company. While the car was still under warranty, Bagwell delivered it to Holly for repairs. He was then driven by a Holly employee to his…