Canal Insurance v. Lebanon Insurance Agency, Inc.

OPINION

JAMES P. JONES, Chief Judge.

In this diversity case, the plaintiff, Canal Insurance Company (“Canal”), seeks indemnity from the defendants, Lebanon Insurance Agency, Inc. (“Lebanon”) and Piedmont Transportation Underwriters, Inc. (“Piedmont”), for the sum of $500,000 that Canal paid in settlement of an uninsured/underinsured motorist claim.

Lebanon and Piedmont have both filed Motions to Dismiss Canal’s First Amended Complaint. The motions have been briefed and argued and are ripe for decision. For the reasons set forth in this Opinion, I find that Canal paid the claim in error and thus…