Universal Underwriters Insurance Company, a Corporation v. American Motorists Insurance Company, a Corporation

HAMLEY, Circuit Judge:

Plaintiff, Universal Underwriters Insurance Company (Universal), seeks re imbursement from defendant, American Motorists Insurance Company (American), for money expended by Universal in settlement of a personal injury suit. Universal is the insurer of K. B. McCarthy (McCarthy), a partnership engaged in the sale of new and used automobiles in Eureka, California; and American is the insurer of Crocker-Anglo National Bank. Federal jurisdiction is conferred by 28 U.S.C. § 1332 (1964).

The present controversy between the two insurance companies arises from the ownership and…