California Casualty Insurance v. David Douglas School District

Plaintiff California Casualty Insurance Company appeals a judgment for defendants David Douglas School District and its business auto liability insurer, St. Paul Fire and Marine Insurance Company. A district administrator, Salvo, obtained a $50,000 personal automobile policy from plaintiff. Subsequently, an injured pedestrian sued the district and Salvo for negligent operation of Salvo’s own car on travel that the district had “authorized.” The claim was settled for $84,000, of which plaintiff paid $50,000 with a reservation of rights and St. Paul paid $34,000.

Plaintiff, as subrogee of…