Aetna Casualty and Surety Company v. Smith

HOOD, Associate Judge.

Appellee Smith, the proprietor of a used car business, filed suit on an insurance policy issued by Aetna seeking indemnification for the loss of a 1949 Hudson automobile. Aetna filed an answer disclaiming liability on the ground that the loss was not covered by the terms of the policy, and filed a third-party complaint against one Allen who, according to Smith, had stolen the vehicle, requesting judgment over against him in the event there was a finding of liability.

At trial it was undisputed that Allen had actually taken the vehicle from Smith’s lot. To avoid liability…