Milbank Mutual Insurance Co. v. United States Fidelity & Guaranty Co.

KELLEY, Justice.

In this declaratory judgment action, United States Fidelity and Guaranty Company (USF&G) appeals from an order of the Clay County District Court granting judgment notwithstanding the verdict of the jury to respondent Milbank Mutual Insurance Company (Milbank). The trial court held that USF&G, as the liability insurer of an employer who had permitted one of its employees to operate one of its vehicles, was the primary liability insurer obligated to defend and indemnify the employee and the employer in actions asserting claims against the employee, and that Milbank, the insurer…